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A stock is expected to pay dividends at the end of each year indefinitely. An investor wishes to receive an effective annual return of 6%.
A stock is expected to pay dividends at the end of each year indefinitely. An investor wishes to receive an effective annual return of 6%. Find the stock price based on the dividend discount model in each of the following cases:
The first dividend is $1 and the second dividend is 2, and subsequent dividends increased by $0.05 every year.
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