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After recently paying a $10.00 dividend, over the next three years, a firm will pay annual dividends of $0.65, $1.70, and $0.75 a share, respectively.
After recently paying a $10.00 dividend, over the next three years, a firm will pay annual dividends of $0.65, $1.70, and $0.75 a share, respectively. After that, dividends are projected to increase by 3 percent annually into perpetuity. What is one share of this stock worth today at a required return of 12.0% and its yield to maturity on its bonds is 8.5%? (DO NOT INCLUDE A "$" IN YOUR ANSWER)
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