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GUIDELINES; A company's stock is expected to distribute a dividend of 4.00 next year with dividend increasing for years 2,3 and 4 by 3%,6% and

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GUIDELINES; A company's stock is expected to distribute a dividend of 4.00 next year with dividend increasing for years 2,3 and 4 by 3%,6% and 9% respectively. After year 4 , dividends are expected to grow by 2% per year. If the discount rate is 12%, what is the fair price of this stock? If the current price of the stock is 42.50 would you buy or sell the stock? Required: Provide solutions to the above

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