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1. Hospitality Rentals will pay a dividend of $5.00 per share exactly one year from today. Dividends are expected to increase by 4% every year

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1. Hospitality Rentals will pay a dividend of $5.00 per share exactly one year from today. Dividends are expected to increase by 4% every year in future years. Dividends will be paid at the end of the year. What price would you pay today for one share of Hospitality Rentals to earn an annual effective return of 8% a year, assuming that dividends will be paid forever

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