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Question 8 - Consider a stock that currently paid a $4 dividend. In one year, it is expected to pay a $5 dividend. The year

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Question 8 - Consider a stock that currently paid a $4 dividend. In one year, it is expected to pay a $5 dividend. The year after, it will pay $7 for three years. After that, the dividends will grow at a constant rate of 7% per year forever. If you require an 11% rate of return on the stock, what is its value to you teday? (10 points)

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