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There are stock A and B in the market. James owns a share of stock A . Stock A expects to pay dividends at the
There are stock A and B in the market.
James owns a share of stock A
Stock A expects to pay dividends at the end of each of the next four years of $ $ $ and $ After the fourth year, the dividends are expected to be $ each year forever.
Stock B expects to pay dividends at the end of each of the next four years of $ $ $ and $ After the fourth year, the dividends are expected to grow at a constant rate of each year forever.
James demands required rate of returns.
How much money does James need if he wants to buy a share of stock B after selling the share of stock A today?
Round the answer to two decimal places.
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