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Question 6 Zero growth: Metasteel Limited Co. has a stable sales track record but does not expect to grow in the next several years. Its

Question 6

Zero growth: Metasteel Limited Co. has a stable sales track record but does not expect to grow in the next several years. Its last annual dividend was $5.75. If the required rate of return on similar investments is 18 percent, what is the current stock price?

A. $103.50

B. $31.94

C. $13.50

D. $39.30

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