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Suppose a stock is expected to pay a dividend of $3 per quarter for the first 4 years, $5 per quarter for the next 6
Suppose a stock is expected to pay a dividend of $3 per quarter for the first 4 years, $5 per quarter for the next 6 years, and $3 per quarter after that (all payments are at the end of each quarter). Stocks with similar betas expect a 7.0% return with quarterly compounding. What is the estimated stock price?
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