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Company X is paying an annual dividend of $4.00 and has decided to pay the same amount forever. If you want to earn an annual

Company X is paying an annual dividend of $4.00 and has decided to pay the same amount forever. If you want to earn an annual rate of return of 12% on this investment and plan to hold the stock for 4 years, with the expectation of selling it for $40 at the end of 4 years. How much should he offer to buy the stock at?

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