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grape plc. pays dividends that are expected to grow at 5% each year. Dividends will stop growing at the end of year 5, at which
grape plc. pays dividends that are expected to grow at 5% each year. Dividends will stop growing at the end of year 5, at which point the firm will pay out all its earnings as dividends. The next dividend will be paid one year from now at 10 and its earning per share (EPS) at the time will be 15. If the appropriate discount rate on Grape plc.is 8%, what is its fair market price of the share today?
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