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The expected dividends for a stock are: Year 1=$2, Year 2=$3, after Year 2, we expect dividends to grow by 6% forever. If we require
The expected dividends for a stock are: Year 1=$2, Year 2=$3, after Year 2, we expect dividends to grow by 6% forever. If we require an annual return of 8% from this stock, what would be the value of the stock to us? If it sells for $30 in the market, should we buy it?
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