A firm has just paid an annual dividend of $3.00 per share of common stock.If the expected long-run growth rate for this firm is 10%,and if you require an annual rate of return of 16%,how much should you be willing to pay for a share of this stock?
A) $61
B) $49
C) $58
D) $35
E) $55
Correct Answer:
Verified
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