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Business, 01.11.2019 04:31 jsph32

You observe thundering herd common stock selling for $40.00 per share. the next dividend is expected to be $4.00, and is expected to grow at a 5% annual rate forever. if your required rate of return is 12%, should you purchase the stock? select one: a. yes, because the present value of the expected future cash flows is less than $40.b. no, because the present value of the expected future cash flows is less than $40. c. no, because the present value of the expected future cash flows is greater than $40. d. yes, because the present value of the expected future cash flows is greater than $40.

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