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You expect a stock to pay a dividend of 60p next year and you expect dividends to grow at a rate of 3%. If the

You expect a stock to pay a dividend of 60p next year and you expect dividends to grow at a rate of 3%. If the required return on the stock is 11%, what is the price of the stock in pennies?

a.

428.57p

b.

561.82p

c.

750.00p

d.

832.50p

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