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You have gathered the following information for a company: Dividend per share paid today 10 Cost of equity 10% Dividend growth rate in perpetuity 6%

You have gathered the following information for a company:

Dividend per share paid today

10

Cost of equity

10%

Dividend growth rate in perpetuity

6%

Based on the dividend discount model, what share price would you expect this company to have today?

$165

$225

$250

$275

$300

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