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A firm is expected to pay $ 2 . 5 dividend per share next year ( D 1 = $ 2 . 5 ) .

A firm is expected to pay $2.5 dividend per share next year (D1=$2.5). The dividend's growth rate is expected to be a 25% per year for three years and thereafter, stay constant at a 6% per year. The required rate of return on the stock is 11%. Find the stock price today.
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