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2. The Production Company has been hit hard due to increased competition. The company's analysts predict that earnings and dividends) will decline at a rate

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2. The Production Company has been hit hard due to increased competition. The company's analysts predict that earnings and dividends) will decline at a rate of 3 percent annually forever. Assume that required rate of return is 12 percent and expected dividend is $2.00. What will be the price of the company's stock three years from now? b

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