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lmagine a frm that plans to distribute a dividend of $5.00next year. Due to fnancial issues, the CEO wants to stopthe dividend payments in Year
lmagine a frm that plans to distribute a dividend of $5.00next year. Due to fnancial issues, the CEO wants to stopthe dividend payments in Year 2 and Year 3. At the end ofYear 4, this frm will restart its dividend payments with$5.00 per share.lf the dividends after year 4 are expectedto grow 0% per year forever and the cost of equity of thisstock is 11.4%, what is the current stock price?
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