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A stock is expected to pay a dividend of $4.00 one year from today. Annual dividends are expected 5. to increase at the rate of
A stock is expected to pay a dividend of $4.00 one year from today. Annual dividends are expected 5. to increase at the rate of 6.25% annually for the next 9 years. After that dividends are expected to grow 2% annually into perpetuity. If investors require a return of 10% annually, what is the value of the stock (i.e., the present value of all future dividends)
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