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Jenny bank is interested in buying the stock of German, Inc., which increasing its dividends at a constant rate of 6 percent. Last year the

Jenny bank is interested in buying the stock of German, Inc., which increasing its dividends at a constant rate of 6 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 16 percent. what is the current value of this stock? What should be the price of the stock in year 5?

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