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Your broker recommends that you purchase Exxon Mobile (XOM) at $40. The stock pays a $3.00 annual dividend, which (like its per share earnings) is

  1. Your broker recommends that you purchase Exxon Mobile (XOM) at $40. The stock pays a $3.00 annual dividend, which (like its per share earnings) is expected to grow annually at 3 percent. If you want to earn 8 percent on your funds, is this stock a good buy?

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