Question: A firm has declared that its next dividend will be .75. If you expect the dividend to grow by 5% per year and you require

A firm has declared that its next dividend will be .75. If you expect the dividend to grow by 5% per year and you require a 10% return, what is the maximum price you will be willing to pay for this stock today?

Group of answer choices

$12.50

$10.71

$15.00

$13.64

$11.67

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