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1. (25 points) What should be the current price of a stock, which is expected to be sold for $45 one year from now, pays

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1. (25 points) What should be the current price of a stock, which is expected to be sold for $45 one year from now, pays a dividend of $5, and has an expected after-tax return of 20%? The tax rate on dividends is 40% and the tax rate on capital gains is 20%

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