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MP3 Corp. has a required rate of return of 13%, an expected dividend next period of $8, and a current market price of $200. Dividends

MP3 Corp. has a required rate of return of 13%, an expected dividend next period of $8, and a current market price of $200. Dividends are expected to grow at 8% per period forever. By how much would the price have to fall before it equals the present value of future cash flows?

a.40

b.60

c.80

d.100

e.120

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