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Suppose Toyota just paid a $5 dividend that is expected to grow every year in the future by 3%. The risk-free rate is 2%. The

Suppose Toyota just paid a $5 dividend that is expected to grow every year in the future by 3%. The risk-free rate is 2%. The stock market has been returning 8%. The Beta of Toyota is 1.15. What should be the price of this stock?

Select one:

a. $250.00

b. $84.74

c. $87.29

d. $80.64

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