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The WCS Inc. is expected to pay $20 of dividend per share to its shareholders next year. Its dividends grow at a steady rate of

The WCS Inc. is expected to pay $20 of dividend per share to its shareholders next year. Its dividends grow at a steady rate of 3% per year forever. If the annual interest rate is 8%, what is the fair market value of the stock today? [Answer is rounded to dollars]

A.

$100

B.

$200

C.

$300

D.

$400

E.

$500

F.

None of the above

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