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1. GG Corp. is expected to pay annual dividends of $1.1 and $2 in the next two years. After two years, the dividend will grow

1. GG Corp. is expected to pay annual dividends of $1.1 and $2 in the next two years. After two years, the dividend will grow at 5% per year indefinitely. The discount rate is 10%. a. Calculate the present value of the first two annual dividends. b. Calculate the intrinsic value of the stock.

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