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You expect XYZ stock to pay $5.50 dividend at the end of the year. The stock price is expected to be $12 at that time.

You expect XYZ stock to pay $5.50 dividend at the end of the year. The stock price is expected to be $12 at that time. If you require a 9% rate of return what would you pay for the stock now?

a. none of the listed choices is correct

b. $11.01

c. $17.5

d. $16.06

e. $19.23

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