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Calculate the fair value for a share that pays an annual dividend of $2.50 and has...

Calculate the fair value for a share that pays an annual dividend of $2.50 and has been growing steadily at 2% per year for the past 20 years and is expected to continue to do so. The required yield for this stock is 12%.

a. $21.25

b. $25.50

c. $25.00

d. $20.83

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jeff jeffy answered 2 years ago
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