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What would you pay for a stock that just paid (i.e., D 0 ) a $1.38 dividend? Dividends and earnings are expected to grow at

What would you pay for a stock that just paid (i.e., D₀) a $1.38 dividend? Dividends and earnings are expected to grow at 7% and investors require an 11% return.

a. $36.92

b. $34.50

c. $55.00

none of the above

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