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Problem 4 Southern Power just paid an annual dividend of $6.3 per share. Because of increasing competition from home solar installations, the dividend is expected

Problem 4

Southern Power just paid an annual dividend of $6.3 per share. Because of increasing competition from home solar installations, the dividend is expected to shrink by 6% per year. The required rate of return is 8%.

Part 1

What should be the current stock price?

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