What is a fair value of this share today

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Question - A share just paid a dividend of $0.60. The dividend is expected to increase at an annual rate of 5% forever. If the required return is 10%, what is a fair value of this share today?

a. $6.30

b. $12.00

c. $13.20

d. $12.60

e. $0.63

Reference no: EM132857459

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