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You want to invest in a stock that pays $6.00 annual cash dividends for the next five years. At the end of the five years,

You want to invest in a stock that pays $6.00 annual cash dividends for the next five years. At the end of the five years, you will sell the stock for $30.00. If you want to earn 10% on this investment, what is a fair price for this stock if you buy it today?

  • $41.37
  • $40.37
  • $18.63
  • $22.75

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