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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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