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You decide to invest in a fantastic company. Interest rate is 5%, and you will receive $5 dividend at the end of the first year.

You decide to invest in a fantastic company. Interest rate is 5%, and you will receive $5 dividend at the end of the first year. The annual dividend growth rate is 3%. What is the expected price of the stock?

Multiple Choice

$250

$166.67

$62.5

$100

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