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IBM just paid an annual dividend of $ 4 . 3 per share. The dividend is expected to grow by 4 % per year. The

IBM just paid an annual dividend of $

4.3

per share. The dividend is expected to grow by

4 %

per year. The required rate of return is

12 % .

Part

1

What is the best estimate of the stock price in

9

years?

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