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Consider the valuation of a common stock that paid a $ 2 . 1 0 dividend at the end of the last year and is

Consider the valuation of a common stock that paid a $2.10dividend at the end of the last year and is expected to pay a cash dividend in the future. Dividends are expected to grow at the same rate as the growth rate of the company. The current financial statements reveal that the Total Common Equity of the company is $2,500,000, The Net Income is $500,000, and the Dividend paid out by the company is $300,000. The beta coefficient of the company is 1.25. The current 3-month T-bill rate and the Return on the S&P 500 Index are 4.5% and 10% respectively. What is the Value of the stock?

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