Return on equity investments

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A stock currently sells for $30 per share and pays $1.00 per year in dividends. What is an investor's valuation of this stock if he expects it to be selling for $37 in one year and requires a 12 percent return on equity investments?

A) $38 B) $33.50 C) $34.50 D) $33.93

Reference no: EM131545267

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