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A firm does not pay a dividend. It is expected to pay its first dividend of $1.00 per share in two years. This dividend will

A firm does not pay a dividend. It is expected to pay its first dividend of $1.00 per share in two years. This dividend will grow at 5 percent indefinitely. Using a 12 percent discount rate, compute the value of this stock.

$12.76
$12.19
$11.96
$11.39

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