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Assume that the expected future dividends ( D ) at end of periods 1 , 2 , and 3 , as well as the expected

Assume that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as follows: D1= $1.20, D2= $1.40, D3= $1.55, and P3= $91. What should be the stock's expected price today, (i.e. P0)? Draw a time line clearly indicating the situation. Assume the required return is 8.3 percent. Answer to 2 decimal places.

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