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The A company just paid a dividend of $2. It expects that the company will distribute dividend of $2.2, $2.9, $3.1 at the end of
The A company just paid a dividend of $2. It expects that the company will distribute dividend of $2.2, $2.9, $3.1 at the end of year 1,2, and 3. The dividend is going to increase forever at a constant rate of 5% after year 2. If your required rate of return is 9%, what is the maximum price you are willing to pay for the stock?
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