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5. Brady wants to invest in ABC stock. He plans to sell the stock in 3 years. The stock is expected to pay a dividend

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5. Brady wants to invest in ABC stock. He plans to sell the stock in 3 years. The stock is expected to pay a dividend next year of $2.00, in year 2 pay a dividend of $3.00, and in year three a dividend of $4.00. Analysts think the stock will trade at a price of $75, three years from now. If Brady requires an 8% return, what is the most Brady should be willing to pay for the stock? (8 points)

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