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This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been reducing the dividends by 15 percent each year (-15%

This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been reducing the dividends by 15 percent each year (-15% growth rate of the dividend). How much are you willing to pay to purchase stock in this company if your required rate of return is 16 percent?

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