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Gamma Inc. (GI) has just paid its annual dividend of $2.00/share (D = $2.00). GI's dividends are expected to grow at an annual growth rate

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Gamma Inc. (GI) has just paid its annual dividend of $2.00/share (D = $2.00). GI's dividends are expected to grow at an annual growth rate of 5% in perpetuity. Calculate Gl's stock price (P5) five years from today, if the required rate of return is 17.5% (EAR). [Answer: Number with 1 decimal. Do not include 's' or the thousands separator.] Answer: 20.4 X The correct answer is: 21.44

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