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Michael's, Incorporated, just paid $3.70 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.2 percent.

Michael's, Incorporated, just paid $3.70 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.2 percent. If you require a rate of return of 12 percent, how much are you willing to pay today to purchase one share of the company's stock?

a) $53.14

b) $47.44

c) $34.53

d) $98.67

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