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Boboli just went public. It does not plan on paying a dividend for the next five years. Starting in year 6, Boboli will pay a

Boboli just went public. It does not plan on paying a dividend for the next five years. Starting in year 6, Boboli will pay a constant dividend of $6 per share, forever. The stock has a beta of 1.125 and market conditions are such that the risk free rate is 5 percent and the market risk premium is 8 percent. At what price should the stock sell for today based upon its expected cash flows?

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