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A stock's current dividend is $1.00, and dividends are expected to grow at a constant rate of 4.50% per year. The intrinsic value of a

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A stock's current dividend is $1.00, and dividends are expected to grow at a constant rate of 4.50% per year. The intrinsic value of a stockik should equal the sum of the present walue (onn of sll of the dividends that a stock is supposed to pay in the future, but many peopie find it deficuit to imagine ading up on infinite number of dividends. Dsa ). Assume that the stock's required return (r1) is 5.40%. the points in the graph to see their coordinstet) Using the blue curve (circle symbols), plot the future walue of each of the expocted future dividends for years 10, 20, and 50 . The resulting curve inill Note: Round each of the discounted values of the of dividends to the nearest tenth decimal place before plotting it on the graph. (Tool tip: Mouse over the points in the graph to sect their coordinates

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