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Wallace Industries paid a dividend of $1.85 on its common stock yesterday. The dividends of Wallace Industries are expected to grow at 8% per year indefinitely. If the risk free rate is 4% and investors' risk premium on this stock is 9%, estimate the value of Wallace Industries stock 2 years from now.

a. $199.80

b. $46.61

c. $41.81

d. $38.11

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