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Suppose the XYZ Corp. is expected to pay a dividend next year of $ 1 per share. Both sales and profits for XYZ are expected

Suppose the XYZ Corp. is expected to pay a dividend next year of $

1

per share. Both sales and profits for XYZ are expected to grow at a rate of

20 %

for the following year and then at

3 %

per year thereafter indefinitely. If the required return is

13 %,

what is the price of a share of XYZ today?

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