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Textile Mills pays an annual dividend of $1.65 a share. The company has promised to maintain a constant dividend even though economic times are tough.

Textile Mills pays an annual dividend of $1.65 a share. The company has promised to maintain a constant dividend even though economic times are tough.

But instead, analysts project that dividends will increase by 1.5% for the next 4 years, and then cease dividend payments forever. In this case, how much are you willing to pay?

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