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Question(s) / Instruction(s):

A share of common stock has just paid a dividend of $2.  If the expected long-run growth rate for this stock is 5%, and if investors required rate of return is 10.5%, what is the stock price?

a)            $35.39

b)            $38.80

c)            $37.23

d)            $38.18

e)            $39.14

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