How much are willing to pay to purchase

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Question 1: Miller Brothers Hardware paid an annual dividend of $1.75 per share last month. Today, the company announced that future dividends will be increasing by 3.00 percent annually. If you require a 8.7 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

Option 1: $33.37

Option 2: $31.62

Option 3: $58.33

Option 4: $29.87

Option 5: $60.08

Reference no: EM132569121

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