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7. In one year, a firm will pay a common stock dividend of $3.35. The dividends have been growing at 6% per year. Based on

7. In one year, a firm will pay a common stock dividend of $3.35. The dividends have been growing at 6% per year. Based on analysts’ forecasts, you predict that you will be able to sell your stock for $48 per share after one year. If you require a rate of return of 14 percent on your stock, how much would you be willing to pay now for a share of the stock?


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