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IBM will pay its 1st annual dividend of $2 one year from today. The dividends will increase at a constant growth rate of 5% till
IBM will pay its 1st annual dividend of $2 one year from today. The dividends will increase at a constant growth rate of 5% till year 5. Thereafter, the dividends will grow at a constant rate of 2% per year forever. If the discount rate used is 10% effective per year, what is the share price of IBM today?
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