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Stock Pricing: A firm expects to pay a $3 dividend next year. This dividend is expected to grow at 4.2 percent a year for two,

Stock Pricing: A firm expects to pay a $3 dividend next year. This dividend is expected to grow at 4.2 percent a year for two, then at zero percent for the next four years and then 0.25 percent forever.

Find the price of this firms stock if the required return on the stock is 8 percent a year.

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