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. Assume each share of common stock of a company was associated with a dividend payment of $25. The company plans to grow dividends at

. Assume each share of common stock of a company was associated with a dividend payment of $25. The company plans to grow dividends at 10% per year.

1. Assuming it is able to keep this promise, and that the relevant discount rate is 15%, what is the market price for each common stock share?

2. Using the same discount rate, what would its share price be if dividends stayed constant?

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