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4. Gallexy, Inc. recently paid a dividend of $4.00. The firm's managers expect dividends to grow at 10% per year for the coming 2 years.

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4. Gallexy, Inc. recently paid a dividend of $4.00. The firm's managers expect dividends to grow at 10% per year for the coming 2 years. After that, dividend growth is expected to slow down to 3% per year indefinitely into the future. Estimate the price of Gallexy stock. The required rate of return is 11%. (4 points)

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