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Peterson Packaging Inc. does not currently pay dividends. The company will start with a $1.00 dividend at the end of year three and grow it

Peterson Packaging Inc. does not currently pay dividends. The company will start with a $1.00 dividend at the end of year three and grow it by 8% for each of the next six years. After six years of growth, it will fix its dividend at $1.72 forever.

If you want a 14% return on this stock, what should you pay today given this future dividend stream?

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