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LAM Corp. is expected to pay its stockholders a dividend of $ 5 per share tomorrow. LAM s dividend is then expected to increase at

LAM Corp. is expected to pay its stockholders a dividend of $

5

per share tomorrow. LAM

s dividend is then expected to increase at the rate of

4

percent per year forever. Investors require a return of

14 %

per year to invest in LAM. Based on this information, what do you think should be the price of one share of LAM today?

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