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The current dividend (Do) from Films, Inc. is $1.14 per share. Dividends have been growing at a constant rate of 7% per year, and this

  1. The current dividend (Do) from Films, Inc. is $1.14 per share. Dividends have been growing at a constant rate of 7% per year, and this trend is expected to continue. If the required rate of return is 10%, what is the maximum price an investor should pay for the stock?

    a.

    $43.32

    b.

    $38.00

    c.

    $12.67

    d.

    $40.67

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