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Assume a stock currently pays a dividend of $2 for the year. Expected dividend growth is 3% for the next two years and 5% thereafter
Assume a stock currently pays a dividend of $2 for the year. Expected dividend growth is 3% for the next two years and 5% thereafter for an indefinite amount of time. The appropriate required rate of return is 7%. What is the value today of a share of this stock? Present your answer as a whole number to two decimals (including the $ symbol), e.g. $187.65 (25\% marks will be deducted if the $ symbol is not provided)
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