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Firm A is expected to pay $2 dividend next year. The dividend will then grow by 10% for another two years. After that, the dividend

  1. Firm A is expected to pay $2 dividend next year. The dividend will then grow by 10% for another two years. After that, the dividend growth rate will decrease to 5% and last forever. How much would you like to pay for this stock if your required rate of return is 7%?

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