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Question(s) / Instruction(s):

A firm has experienced a constant annual rate of dividend growth of 9 percent on its common stock and expects the dividend per share in the coming year to be $2.70. The firm can earn 12 percent on similar risk involvements. The value of the firm's common stock is ______.

  1. $22.50/share
  2. $9/share
  3. $90/share
  4. $30/share

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