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2) Suppose that a stock is expected to pay a dividend of $2.50 next year, a dividend of $2.75 the following year and a dividend

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2) Suppose that a stock is expected to pay a dividend of $2.50 next year, a dividend of $2.75 the following year and a dividend of $3.00 the year after. After this, dividends are expected to grow at a constant rate of 4% per year. If the required return of this stock is 8%, what is the appropriate price

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