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Sailsboro just paid a dividend of $1 per share. Dividends are expected to grow at 12%, 7%, and 5% for the next three years respectively.

Sailsboro just paid a dividend of $1 per share. Dividends are expected to grow at 12%, 7%, and 5% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 3% indefinitely. Stockholders require a return of 8 percent to invest in Sailsboros common stock. Compute the value of Sailsboros common stock today..

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