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Baggins Systems is a firm that has encountered some financial difficulties. The company projects that they will have enough cash flow to continue paying their
Baggins Systems is a firm that has encountered some financial difficulties. The company projects that they will have enough cash flow to continue paying their current dividend for more years before they must stop paying a dividend altogether. The company just paid a dividend of $ and will continue to pay the same dividend for the next years, after which they will never pay another dividend. What is the value of their stock if the discount rate is
a $
b $
c $
d $
e $
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