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A stock currently trades at $50 per share. The stock is expected to pay an annual dividend of $2 per share for the next three

A stock currently trades at $50 per share. The stock is expected to pay an annual dividend of $2 per share for the next three years, after which the dividend is expected to increase to $2.50 per share per year indefinitely. If the required rate of return for this stock is 8%, what is the fair value of the stock?

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