Common stocks current dividend

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Reference no: EM13914886

The Varner Corp. common stock's current dividend (D0) is $4.00, and the expected growth rate is 10 percent. if you require a rate of return of 20 percent, then what is the highest price you should be willing to pay for this stock?

A. $44.00

B. $33.00

C. $40.00

D. $29.33

E. $50.00

Reference no: EM13914886

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