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Question
Shasta Co. just paid a dividend of $1.65 (D0) on its common stock. This company's dividends are expected to grow at a constant rate of 3% indefinitely. If the required rate of return on this stock is 11%, compute the current value per share of Shasta stock.A) $20.63
B) $21.24
C) $15.00
D) $55.00
Answer
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