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River Street, Inc. currently pays a dividend of $2.50 per share. The firms cost of equity capital is 10%, and dividends are expected to grow

River Street, Inc. currently pays a dividend of $2.50 per share. The firms cost of equity capital is 10%, and dividends are expected to grow at 6% per year for the foreseeable future (i.e. forever). Based on this information, what is the value of the firms stock today? What is the value in five years?

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