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1. XYZ Corporation is expected to pay the following dividends over the next three years: $10, $5, and $2.50. Afterwards, the company pledges to maintain

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1. XYZ Corporation is expected to pay the following dividends over the next three years: $10, $5, and $2.50. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price? (6)

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