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Suppose the shares of Fulton Inc. are expected to pay a $1/share dividend next year. No growth is expected, and the firms cost of equity

Suppose the shares of Fulton Inc. are expected to pay a $1/share dividend next year. No growth is expected, and the firms cost of equity capital is 10%. The risk-free rate is 2%. What should be the price of this stock?

Select one:

a. $1.10

b. $10.00

c. $12.50

d. Not enough information is given to solve this problem

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