The last dividend on Spirex Corporation's common stock was $4.00, and the expected growth rate is 10 percent. If you require a rate of return of 20 percent, what is the highest price you should be willing to pay for this stock?
A. ?$38.50
B. ?$40.00
C. ?$45.69
D. ?$44.00
E. ?$50.00
Answer: D
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