Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.00 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 12% return on your equity investments?
A) $10.00
B) $13.33
C) $16.67
D) $18.88
E) $20.00
Correct Answer:
Verified
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