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Suppose you expect a stock s dividend to grow at 7 % per quarter for the next 1 0 years and at 4 % per
Suppose you expect a stocks dividend to grow at per quarter for the next years and at per quarter
thereafter. The firm has just paid its quarterly dividend and you expect the next quarterly dividend to be $ per
share. What is the maximum price that you would be willing to pay for this security if you require an quarterly
rate of return?
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