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Firm XYZ just paid a dividend of $1.9. The dividend will grow by 5% for two years and 8% for another three years. After that,
- Firm XYZ just paid a dividend of $1.9. The dividend will grow by 5% for two years and 8% for another three years. After that, the dividend growth rate will decrease to 3% and last forever. How much would you like to pay for this stock if your required rate of return is 9%?
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