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The stock of Spy Company typically provides*an average rate of return of12.4percent. The firm's next annual dividend is projected at $.89with future increases of2.1percent per

The stock of Spy Company typically provides * an average rate of return of 12.4 percent. The firm's next annual dividend is projected at $.89 with future increases of 2.1 percent per year. What price should you pay for this stock if you are satisfied with the firm's average rate of return?

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