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PLEASE ANSWER ASAP WILL RATE!!! Question 25 1 pts ABC common stock is expected to earn $4.00 per share (EPS = $4.00) next year and

PLEASE ANSWER ASAP WILL RATE!!! image text in transcribed
Question 25 1 pts ABC common stock is expected to earn $4.00 per share (EPS = $4.00) next year and to pay 50% of its EPS in cash dividend. If the expected growth rate in dividends is constant at 6% and the required rate of return for the stock is 11%, the stock price (fair value) today should be 1. $25 2. $30 3. $35 4. $40 5. $45 KN 1 4 2 3 5

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