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Consider a firm that has just paid a dividend of $3. An analyst expects dividends to grow at a rate of 8 percent per year

Consider a firm that has just paid a dividend of $3. An analyst expects dividends to grow at a rate of 8 percent per year for the next five years. After that, dividends are expected to grow at a normal rate of 1 percent per year. Assume that the appropriate discount rate is 7 percent. What is the price of the stock today?

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