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Company XYZ is expected to pay annual dividends of $2, $3, and $4 at the end of the next three years, respectively. At the end

  1. Company XYZ is expected to pay annual dividends of $2, $3, and $4 at the end of the next three years, respectively. At the end of Year 4, the company will pay $5 dividend per share and the dividend level will start growing at a constant rate of 3%. If the cost of equity capital is 8%, what is the stock price now?

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