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(c) Consider a stock that pays annual dividends. It is expected to pay a constant dividend D dollar per share for the next six years,

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(c) Consider a stock that pays annual dividends. It is expected to pay a constant dividend D dollar per share for the next six years, after which the dividends are expected to grow at a constant rate of 3 percent per year forever. In other words, it will pay D per share from year 1 to year 6 after which the dividend will grow at a constant rate of 3 percent per year forever. The cost-of-capital for the stock is 19.45%. If the fair value of the stock today is $23.3238, find the dividend D

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