What price should the stock sell for

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Question - Farris Farms Ltd just paid a dividend of $2.00. If investors expect the dividend to grow at 4% per year and they require a 14% rate of return to hold the stock, what price should the stock sell for?

a. $20.60

b. $20.80

c. $21.60

d. $21.80

Reference no: EM133037273

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