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Consolidated, Inc. has common stock that paid its annual dividend two days ago. Consolidated anticipates that future annual dividends will grow at a rate of
Consolidated, Inc. has common stock that paid its annual dividend two days ago. Consolidated anticipates that future annual dividends will grow at a rate of 4% per year into the foreseeable future. An investor who has an expected return of 16% per year (effective) intends to purchase Consolidated stock today at $25 per share. Compute the value of the dividend that was just paid.
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