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Consider the following stock when the market capitalization rate is 10%. -Stock D is expected to pay a dividend of $5 next year. Thereafter, dividend
Consider the following stock when the market capitalization rate is 10%. -Stock D is expected to pay a dividend of $5 next year. Thereafter, dividend growth is expected to be 20% a year for five years (i.e.,until year 6) and 1.5% a year thereafter forever. What is the price of Stock D?.
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