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1. your company is estimated to make dividends payments of $2.4 next year, $3.9 the year after , and $4.4 in the year after that.
1. your company is estimated to make dividends payments of $2.4 next year, $3.9 the year after , and $4.4 in the year after that. The dividend will then grow at a constant rate of 6% per year. If the discount rate is 9%, then what is the current stock price??
2. A stock will pay no dividends for the next 7 years. Then it will pay a dividend of $5 growing at 4%. The discount rate is 7%. What should be the current stock price??
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