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ABC Corporation currently pays no dividends on its common stock but plans to pay a dividend of $2.00 a share in 6 years. It then

ABC Corporation currently pays no dividends on its common stock but plans to pay a dividend of $2.00 a share in 6 years. It then plans to increase its dividend at an annual rate of 3% indefinitely. If your required rate of return is 8%, EXPLAIN (and show with numbers) how you would solve for the maximum price that you would be willing to pay for the stock TODAY

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