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Question 7 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 7

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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