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JFG stock is expected to pay a dividend of $6.25 a share in one year. Thereafter, the expected annual growth rate of the dividend is
JFG stock is expected to pay a dividend of $6.25 a share in one year. Thereafter, the expected annual growth rate of the dividend is 3.5%. Based on the Dividend Discount model, what is the most that you would be willing to pay for a share of JFG stock today if your required rate of return is 14.2% per annum? Answer to the nearest penny.
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