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A firm is expected to pay 5 / share in dividends next year. Those dividends are expected to grow by 1 0 % for the

A firm is expected to pay

5 /

share in dividends next year. Those dividends are

expected to grow by

10 %

for the next three years and

2 %

thereafter. If the discount

rate is

10 %,

what is the current price of this security?

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