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A stock just paid an annual dividend of $1.3. The dividend is expected to grow by 9% per year for the next 4 years. The

A stock just paid an annual dividend of $1.3. The dividend is expected to grow by 9% per year for the next 4 years. The growth rate of dividends will then fall steadily from 9% after 4 years to 3% in year 8.

The required rate of return is 12%.

What is the stock price if the dividend growth rate will stay 3% forever after 8 years?

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