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You are considering the purchase of a share of common stock from a company with earnings per share (EPS) of $3.72 last year. You think

You are considering the purchase of a share of common stock from a company with earnings per share (EPS) of $3.72 last year. You think it reasonable to assume that earnings will remain constant at this level into the (infinite) future. If you require a return of 8.45%, how much should you be willing to pay for a share of the stock?

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