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A stock just paid an annual dividend of $3.44. The dividend is expected to grow by 9% per year for the next 5 years. It

A stock just paid an annual dividend of $3.44. The dividend is expected to grow by 9% per year for the next 5 years. It will then grow by 2% per year forever.

The required rate of return is 11%.

1What is the dividend in year 5?

2What is the terminal value (P5)?

3What is the current stock price?

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