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A firm pays a $2.50 dividend at the end of year one (01), has a stock price of $98 (Pa), and a constant growth rate

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A firm pays a $2.50 dividend at the end of year one (01), has a stock price of $98 (Pa), and a constant growth rate (g) of 7 percent. Martin Office Supplies paid a $5 dividend last year. The dividend is expected to grow at a constant rate of 8 percent over the next four years. The required rate of return is 22 percent (this will also serve as the discount rate in this problem). Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods

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