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2. Suppose the rate of inflation is anticipated to be 5% in perpetuity. The nominal interest rate is 9%. Consider a firm whose dividends grow

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2. Suppose the rate of inflation is anticipated to be 5% in perpetuity. The nominal interest rate is 9%. Consider a firm whose dividends grow at a real rate of 3% in perpetuity. The next dividend will be paid in one year, and is expected to be $2 per share (in nominal terms). What is the price per share of this firm today

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