How much should you pay for the stock

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Reference no: EM132369014

Question :

Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?

Dividend $ 1.35

Rate of Return 0.095

Reference no: EM132369014

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