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Suppose Mike Inc. has 100 shares outstanding. It receives a constant net income of $1,000 annually and will pay all of it as dividends. What

  1. Suppose Mike Inc. has 100 shares outstanding. It receives a constant net income of $1,000 annually and will pay all of it as dividends. What is the stock price today? Assuming the required rate of return is 10 percent.

    A.

    $110
    B.

    $100
    C.

    $90
    D.

    $10

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