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New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.35 per share exactly 10 years from today.
New Gadgets, Inc., currently pays no dividend but is expected to pay its first annual dividend of $5.35 per share exactly 10 years from today. After that, the dividends are expected to grow at 3.8 percent forever. If the required return is 12.2 percent, what is the price of the stock today?
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