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Eagle Outfitters is a company whose fortunes have been declining for the last few years. The company just paid a dividend of $4.79 per share,

Eagle Outfitters is a company whose fortunes have been declining for the last few years. The company just paid a dividend of $4.79 per share, but management expects to reduce the payout by 5.2% indefinitely. If you require a rate of return of 12.5% on this stock, what will you pay for a share today ?

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