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You bought a stock 3 years ago. The stock just paid a $4.00 dividend and has a required rate of return of 10%. What is

You bought a stock 3 years ago. The stock just paid a $4.00 dividend and has a required rate of return of 10%. What is its value if the dividends are expected to grow at the annual rate of 5% forever?
  • A. $42
  • B. $84
  • C. $40
  • D. $87.43
  • E. $80

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