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A stock pays a $1.00 dividend at the end of year 1. A $1.25 dividend in year 2. A $1.50 dividend in year 3. At
A stock pays a $1.00 dividend at the end of year 1. A $1.25 dividend in year 2. A $1.50 dividend in year 3. At the end of year 4, the company plans to liquidate and return $90 per share to shareholders and then cease operations. What is the value of a share today? Use a discount rate of 10%.
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