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The Green Leaf Co. pays a constant annual dividend of $2.80 a share. The company announced today that it will continue to pay the annual
The Green Leaf Co. pays a constant annual dividend of $2.80 a share. The company announced today that it will continue to pay the annual dividend for the next 2 years, but afterwards they will no longer pay dividends. If the required annual rate of return is 8.4 percent, what is this stock worth today? Assume the next dividend is in one year.
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