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Company A announced that its current dividend is $3 per share (D 0 =$3). The dividend is expected to grow at a constant rate of

Company A announced that its current dividend is $3 per share (D0=$3). The dividend is

expected to grow at a constant rate of 5 percent a year for the next 2 years and it will be 2

percent thereafter. Required rate of return is equal to 15%. What is the expected price of the

stock at the end of the first year? (Answer is rounded)

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