Cyberdyne Systems just paid a dividend of $1.32 on its common stock,and the next dividend will be paid one year from now.You require a return of 6%.What is the market price of this stock if dividends are paid annually in perpetuity and grow at the rate of 2.62% per year forever?
A) $15.31
B) $15.71
C) $22.58
D) $39.05
E) $40.08
Correct Answer:
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