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A company recently paid a $ 3 . 5 0 dividend. It plans to increase this dividend by 1 5 % next year. The year

A company recently paid a $

3.50

dividend. It plans to increase this dividend by

15 %

year. The year after, it will begin reducing its dividend by

3 %

per year until it arrives at

the sector average of

5 % .

The company's stock currently sells for $

75 .

What is the market

signaling is the company's appropriate discount rate?

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