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Company Y just made a dividend payment of $0.50 per share. Investors expect the dividend to grow by 10% per year in the first two
Company Y just made a dividend payment of $0.50 per share. Investors expect the dividend to grow by 10% per year in the first two years and then by 2% per year starting in the third year. What's the maximum price investors are willing to pay for Company Y's stocks if they require an annual return rate of 12%? (15 points)
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