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The common stock of ABC, Inc. has a current market price of $52 per share. Dividends have been $5 a share for several years and are not expected to change. The dividend yield of the stock of comparable companies is 10%. Which recommendation would you make regarding ABC, Inc. stock?A)Purchase at $52 per share because the dividend yield will be 10.1%.B)Purchase at $52 per share because that is a fair priceC)Don't purchase for more than $50 per share. D)Don't purchase, because the dividend yield will be only 2%.
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