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The Constant Growth (Gordon) Model 5. The Spinnaker Company has paid an annual dividend of $2 per share for some time. Recently the board of

The Constant Growth (Gordon) Model 5. The Spinnaker Company has paid an annual dividend of $2 per share for some time. Recently the board of directors voted to grow the dividend by 6% from now on. What is the most you would be willing to pay for a share of Spinnaker if you expect a 10% return on your stock investments?

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