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ABC Inc. is a mature manufacturing firm. The company just paid dividends of $7.25 per share, but management expects to reduce dividends by 4 percent

ABC Inc. is a mature manufacturing firm. The company just paid dividends of $7.25 per share, but management expects to reduce dividends by 4 percent per year indefinitely. If you require a rate of return of 9.7 percent on this stock, what will you pay for a share today?

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