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K Mart Inc is expected to pay a dividend of $2.50 per share next year on its common stock and this dividend is expected to

K Mart Inc is expected to pay a dividend of $2.50 per share next year on its common stock and this dividend is expected to grow at a rate of 5% per year forever into the future. What is the fair price for a share of K Mart Inc common stock if a 16% rate of return is required?

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