Question: 4. Using the Gordon Dividend Growth Model what price would you pay for a company that just paid a dividend of $3.78per share, has a

4. Using the Gordon Dividend Growth Model what price would you pay for a company that just paid a dividend of $3.78per share, has a

cost of capital at 9.75%and a dividend growth rate of 1.87%?

a. $47.97

b.$48.87

c.$25.04

d.$39.56

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