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Macro Systems just paid an annual dividend of $0.42 per share. Its dividend is expected to double each year for the next three years

 

Macro Systems just paid an annual dividend of $0.42 per share. Its dividend is expected to double each year for the next three years (D1 through D3), after which it will grow at a more modest pace of 1% per year. If the required return is 5%, what is the current price?

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