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A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $ 2 . 5 0 per share. The

A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of
$2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The
stocks required rate of return is 12%. What would be a price for this stock?

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