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Problem 2 Forever 21 is expected to pay an annual dividend of $3.48 per share in one year, which is then expected to grow by

Problem 2

Forever 21 is expected to pay an annual dividend of $3.48 per share in one year, which is then expected to grow by 8% per year. The required rate of return is 14%.

Part 1

What is the current stock price?

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