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a stock is expected to pay dividend of INR 5 next year. This dividend will grow at 8 % for next five years. The dividend

a stock is expected to pay dividend of INR

5

next year. This dividend will grow at

8 %

for next five years. The dividend expected in the

7

th year is INR

8.33 .

It will continue to grow at

4 %

thereafter. What is the value of the stock today if the cost of equity is

10 %

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