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Suppose a firm will pay a $2 dividend next year and expects to increase dividends by 20%, 15%, and 10% over the following three years.

Suppose a firm will pay a $2 dividend next year and expects to increase dividends by 20%, 15%, and 10% over the following three years. After that, dividends will increase at a rate of 5% per year indefinitely. If the required return is 17%, what is the price of the stock today?

$21.50

$18.80

$19.21

$20.98

$22.14

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