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Client wants to purchase common stock of New Frontier Inc. and hold it for three years. The directors of the company just announced that they

Client wants to purchase common stock of New Frontier Inc. and hold it for three years. The directors of the company just announced that they expect to pay an annual cash dividend of $4.00 per share for the next five years. Client believes that he will be able to sell the stock for $40 at the end of three years. In order to earn 12% on this investment, how much should Client pay for this stock?

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