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Assume that investors require a rate of return of 10% to invest in a firm that pays a dividend of $2 next year. What will

Assume that investors require a rate of return of 10% to invest in a firm that pays a dividend of $2 next year. What will be the stock price if the firms dividend begins to grow at a rate of 2% per year and is expected to continue to do so indefinitely?

possible answer: 25

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