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The XYZ company just paid a dividend of $3.20 per share on their stock. The dividend is expected to grow at a constant rate of

The XYZ company just paid a dividend of $3.20 per share on their stock. The dividend is expected to grow at a constant rate of 4% per year indefinitely. If investors require a return 10.5% on the stock, what is the current stock price?

a. $49.23

b. $51.20

c. $33.60

d. $80

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