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A firm does not pay a dividend. It is expected to pay its first dividend of $0.25 per share in 3 years (D3). This dividend

A firm does not pay a dividend. It is expected to pay its first dividend of $0.25 per share in 3 years (D3). This dividend will grow at 8 percent indefinitely. Using a 10 percent discount rate, compute the value of this stock. a. $2.50 b. $10.33 c. $13.50 d. $13.75 e. $12.50

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