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1. A small, private company pays a dividend of $2 per quarter and it expects to continue to pay this dividend indefinitely because it cannot

1. A small, private company pays a dividend of $2 per quarter and it expects to continue to pay this dividend indefinitely because it cannot grow because of some legal restraint. Assume a discount rate of 7%. What is the current stock price based on the Dividend Discount Model?
PO = Div1/r
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1. A small, private company pays a dividend of $2 per quarter and it expects to continue to pay this dividend indefinitely because it cannot grow because of some lege restraint. Assume a discount rate of 7%. What is the current stock price based on the Dividend Discount Model? PO=Div1/r

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