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Due to the devastating economic impact of the global pandemic, a firm just announced that over the next two years it will pay a reduced
Due to the devastating economic impact of the global pandemic, a firm just announced that over the next two years it will pay a reduced dividend of $1.80 per year. Three years from today it expects to pay a dividend of $5.90 and thereafter dividends are expected to grow at a constant annual growth rate of 1.9%. Assuming a discount rate of 14%, calculate the fair value of the firm's stock today.
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