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Suppose a stock pays a $2 dividend at the end of the year = D today (1+g), the required return (the interest rate i )

Suppose a stock pays a $2 dividend at the end of the year = D_today(1+g), the required return (the interest rate i ) = 8% and the growth rate i= 6%

What should be the price using the above model?

a. $50

b. $100

c. $75

d. $25

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