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Question
Main Street Antiques is planning on paying an annual dividend of $2.20 per share next year. The company is slowly downsizing and is decreasing its dividend by 3 percent annually. What is the current value of this stock at a discount rate of 8 percent?A. $18.86
B. $19.12
C. $19.78
D. $20.00
E. $20.57
Answer
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