The Good Life offers a common stock that pays an annual dividend of $2 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 9% return on your equity investments?
A) $22.22
B) $24.22
C) $26.67
D) $28.57
E) $31.14
Correct Answer:
Verified
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