Find what the value of the firm common stock is

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Problem 1: A firm has experienced a constant annual rate of dividend growth of 9 percent on its common stock and the dividend that was paid this year was $2.70. The firm can earn 12 percent on similar risk involvements. The value of the firm's common stock is ________.

A) $102.50/share
B) $98/share
C) $90/share
D) $110/share

Reference no: EM132941729

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