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A firm is expected to pay a dividend of $ 3 . 7 5 next year and $ 4 . 0 5 the following year.

A firm is expected to pay a dividend of $3.75 next year and $4.05 the following year. Financial analysts believe the stock will be at their price target of $110 in two years. Compute the value of this stock with a required return of 13.7 percent.

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