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Prosperity announced a dividend of $3.50 per share in one year from today. Afterwards, the company expects that their business wont do too well, and
Prosperity announced a dividend of $3.50 per share in one year from today. Afterwards, the company expects that their business wont do too well, and will not pay dividends for 7 years. In 9 years from today, they expect to pay an annual dividend of $5.00 in perpetuity. If you know that the required return is 10.0%, estimate the current price of the stock.
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