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Return on your equity investment

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LUCKY Stores offers a common stock that pays an annual dividend of $2.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 12% return on your equity investment?

a. $10.00

b. $13.33

c. $16.67

d. $18.88

e. $20.00

Reference no: EM132200176

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