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7. You are evaluating a stock for potential investment. It is expected to pay a dividend of $4 next year. If your required rate is

7. You are evaluating a stock for potential investment. It is expected to pay a dividend of $4 next year. If your required rate is 12%, and the stock is expected to grow at a rate of 5% per year for the foreseeable future, what is your estimate of the value of the stock?

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