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There are only 2 investment options: share A or B. Company A has a current share price of $1.5 and is expected to pay an

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There are only 2 investment options: share A or B. Company A has a current share price of $1.5 and is expected to pay an annual dividend of $0.10 next year. The dividend is expected to remain at this level forever. Company B recently paid a dividend of $0.30 and this dividend is expected to grow at 5% p.a. forever. What should the price of Company B's shares be if their risk levels and the risk/returns trade-off of the two companies are the same? (rounded to 2 decimal points) Select one: O A. $4.00 B. $2.70 O C. $16.61 D. $18.90

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