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Suppose a stock just paid a $1 dividend last year. That dividend is expected to grow by 2% perpetually. If the firms cost of equity
Suppose a stock just paid a $1 dividend last year. That dividend is expected to grow by 2% perpetually. If the firms cost of equity capital is 12%, what should be the price of its stock?
Select one:
a. $10.00
b. $8.33
c. $8.50
d. $10.20
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