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A company just paid a dividend of $1.10 per share. You expect the dividend to grow 12% over the next year and 9% two years
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A company just paid a dividend of $1.10 per share. You expect the dividend to grow 12% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 6% per year. If the required rate of return is 13% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
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