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Question 11 Suppose a company has just paid an annual dividend of $2.00 per share. The company expects to grow this dividend at an annual

Question 11

Suppose a company has just paid an annual dividend of $2.00 per share. The company expects to grow this dividend at an annual rate of 3.0%. The cost of capital for this stock is 10%. What is the price of the stock today?

a. $18.14

b. $18.90

c. $22.88

d. $27.96

e. $29.43

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