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14. Reddick Enterprises' stock is going to pay a dividend of $5 in the next year. Since then the dividend is projected to increase at

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14. Reddick Enterprises' stock is going to pay a dividend of $5 in the next year. Since then the dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, r, is 9.00%, what is the present value of the 3rd year dividend? What is the price of the stock at the end of the 3"d year? (6 points Hint: to solve for Pa you need to use Div)

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