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( 5 points ) A stock will pay its next dividend of $ 5 in 7 months. Each subsequent dividend will be paid every 1

(5

points

)

A stock will pay its next dividend of $

5

7

months. Each subsequent dividend will be paid every

12

months, and will be

4 %

lower than the previous one. These dividends will be paid forever. What is the present value of the stock?

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