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The Elder Co. is in downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans to lower the dividend

The Elder Co. is in downsizing mode. The company paid a $2.50 annual dividend last year. The company has announced plans to lower the dividend by $.50 a year. Once the dividend amount becomes zero, the company will cease all dividends permanently. The required rate of return is 14.5 percent. What is one share of this stock worth?

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