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Maxwell Communications paid a dividend of $3 last year. Over the next 12 months, the divident is expected to grow at 8%, which is the

Maxwell Communications paid a dividend of $3 last year. Over the next 12 months, the divident is expected to grow at 8%, which is the constant growth rate for the firm (g). The new divident after 12 months will represent D1. The required rate of return (Ke) is 14%. Compute the price of the stock (P0).

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