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Gamma Corp. is expected to pay the following dividends over the next four years: $7.50, $8.25, $15, and $1.80. Afterward, the company pledges to maintain a constant 4 percent growth rate in dividends, forever. If the required return is 14 percent, what is the current share price?

A. $35.20

B. $31.06

C. $38.18

D. $32.30

E. $34.90

Financial Management, Finance

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