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Question 7: Valuing Stocks A firm has just paid out an annual dividend of $1.70. Dividends are predicted to grow by $0.15 per year over

Question 7: Valuing Stocks A firm has just paid out an annual dividend of $1.70. Dividends are predicted to grow by $0.15 per year over the next 5 years. After then, the firm's dividends are expected to grow 696 per year. If the equity cost of capital is 8% per year, what price does the dividend-discount model predict the firm's stock should sell for today?

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