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Question
Castle, Inc. paid a dividend yesterday of $2 per share. Castle management expects the dividend to increase next year to $3 annually. If the dividend is expected to stay at $3 per year for the foreseeable future, what is the value of the stock to an investor with a required rate of return of 10%?A) $7.50
B) $30.00
C) $32.00
D) $50.00
Answer
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