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21-04-2024
Business

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A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 1.5%. What is the stock's current price?
a. $7.03
b. $4.43
c. $8.33
d. $5.73
e. $3.13

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