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1. (1pt) The Red Bud company pays a dividend of $2.10 a share. The company announced today that it will continue to do this for

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1. (1pt) The Red Bud company pays a dividend of $2.10 a share. The company announced today that it will continue to do this for another 2 years and then they are discontinuing paying dividends permanently. What is the price of this stock worth today if the required rate of return is 7.7% ? Hint: There are only 2 dividends, or cash flows remaining. The price of this stock is the PV of these cash flows

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