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A local wine equipment manufacturer is planning to issue stocks. The company just paid a dividend of $3.20. Analysts expect the dividends to grow at

A local wine equipment manufacturer is planning to issue stocks. The company just paid a dividend of $3.20. Analysts expect the dividends to grow at an annual rate of 6% for the foreseeable future. If investors are expected to demand a rate of return of 16%, what should be the price of the share if a Gordon-Growth model is used?

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