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7. Common Stock Price A common stock will pay a dividend next year i.e., at t-1) at t-2, the expected dividend is $3.50 After t2,
7. Common Stock Price A common stock will pay a dividend next year i.e., at t-1) at t-2, the expected dividend is $3.50 After t2, at a constant rate of 2% per year dividends are expected to grow forever. If the appropriate price of the common stock? rate of return is 10%, what is the
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