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Suppose the company will pay a dividend of $ 2 . 5 per common share four years from today and indefinitely increase the dividend by

Suppose the company will pay a dividend of $

2.5

per common share four years from today and indefinitely increase the dividend by

3 %

per year. If the required return on this stock is

12 %,

what is the price per common share in three years? What is the current share price?

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