Pledges to increase its dividend

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Reference no: EM13877825

Metroplex Corporation will pay a $5.10 per share dividend next year. The company pledges to increase its dividend by 4.00 percent per year indefinitely.

If you require a 9.00 percent return on your investment, how much will you pay for the company's stock today?

A) $102.00

B) $106.08

C) $37.72

D) $98.08

E) $97.92

Reference no: EM13877825

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