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Problem 3. (20 points) XYZ Company's current stock price is $30 per share, its last paid dividend was $2.5 per share, and its required rate

Problem 3. (20 points) XYZ Company's current stock price is $30 per share, its last paid dividend was $2.5 per share, and its required rate of return is 10%. If dividends are expected to groW at a constant rate, g, in the future, what is XYZ Company's expected stock price 5 years from now?

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