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Quaker Inc. made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $ 2

Quaker Inc. made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2 a share. Secondly, the company announced that all future dividends will increase by 3% annually. What is the maximum amount you should pay to purchase a share of the companys stock if your goal is to earn a 6% rate of return? Angela's Stores offers a common stock that pays an annual dividend of $4.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 9% return on your equity investments?

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