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XYZ stock is expected to pay a dividend of $1.5 at the end of the year. The required rate of return is rs = 10%,

XYZ stock is expected to pay a dividend of $1.5 at the end of the year. The required rate of return is rs = 10%, and the expected constant growth rate is g = 7%. What is the stock's current price? *

a) $50

b) $45

c) $36

d) $50.5

e) None of the above

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