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The Red Bud Co. pays a constant dividend of $3.40 a share. The company announced today that it will continue to do this for another

The Red Bud Co. pays a constant dividend of $3.40 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 9.0 percent?

$6.80

$3.71

$9.38

$3.87

$5.98

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