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ii) VX Ltd. has historically adhered to an annual constant growth rate policy of 5%. The company has decided however that it will only maintain

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ii) VX Ltd. has historically adhered to an annual constant growth rate policy of 5%. The company has decided however that it will only maintain this policy for one more year, after which dividends will grow at a constant rate of 2% annually. Determine the current price of the stock if the company paid a dividend of $1.50 at the start of this year and the rate of return in the market is 9%. r=9%g=2%

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