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Michael's, Incorporated, just paid $ 2 . 0 5 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be

Michael's, Incorporated, just paid $2.05 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.5 percent. If you require a rate of return of 8.7 percent, how much are you willing to pay today to purchase one share of the company's stock?

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