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Company W is expected to increase the dividend on their common stock by 3 % for the foreseeable future. The required rate of return on

Company W is expected to increase the dividend on their common stock by

3 %

for the foreseeable future. The required rate of return on the stock is

8 %,

and it is

expected to pay a $

2

dividend one year from now. What is the value of the stock?

Numeric Response

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