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Suppose a stock is expected to continue paying a cash dividend of $0.70 per share every year indefinitely. If the required return is 6.9% per

Suppose a stock is expected to continue paying a cash dividend of $0.70 per share every year indefinitely. If the required return is 6.9% per annum, what price would you expect to pay for this stock 7 years in the future?

Assume that there are no changes to the dividend payments or required return in 7 years time.

$8.86

$10.14

$0.70

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