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PLEASE SHOW WORK An investor holds the stock of Last-But-Not-Least Financials and expects to receive a dividend of $4.75 per share at the end of

PLEASE SHOW WORK

An investor holds the stock of Last-But-Not-Least Financials and expects to receive a dividend of $4.75 per share at the end of the year. Stock analysts recently predicted that the banks dividends will grow at approximately 3 percent a year indefinitely into the future. If this is true, and if the appropriate risk-adjusted cost of capital (discount rate) for the bank is 14 percent, what should be the current price per share of Last-But-Not-Least Financials stock?

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