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SOS Inc. has just paid a dividend of $3.4 and is considering the following dividend policies: Increase dividends by 7% in year one and by

SOS Inc. has just paid a dividend of $3.4 and is considering the following dividend policies:

Increase dividends by 7% in year one and by 5.2% in year two. After that, dividends will decrease at a rate of 4.6% per year indefinitely.

The required return on the equity of SOS is 8.7%. Calculate the currentstock price of SOS under,

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