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A financial analyst estimates that there is a 30% probability that the dividend paid by a company next year is going to be $4.50, a
A financial analyst estimates that there is a 30% probability that the dividend paid by a company next year is going to be $4.50, a 30% probability that the dividend paid by a company next year is going to be the same as the last year, which was $4.00, and a 40% probability that the dividend will increase by 25% from the last year's dividend. She also feels that the company will grow at the rate of 8% in the long term. Your required rate of return for that company's stock is 12%. Do you pay $115 for a share in the company? Justify your
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