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A company plans to pay a dividend of $0.50 per share next year rising by $0.25 per year until it reaches $2.50, at which point

A company plans to pay a dividend of $0.50 per share next year rising by $0.25 per year until it reaches $2.50, at which point it will remain flat forever. If the discount rate is 9% per year, what is the present value of the dividends, i.e. the value of a share of stock?

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