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(6 marks) You are interested in buying a share of Simcoe Pharmaceuticals. The company just paid a dividend of 2 dollars per share. Dividends are

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(6 marks) You are interested in buying a share of Simcoe Pharmaceuticals. The company just paid a dividend of 2 dollars per share. Dividends are going to grow at the rate of 20 percent for 5 years. After this period, dividends are going to grow at the rate of 5% indefinitely. Required: a) If the required return on this stock is 10%, calculate how much would you be willing to pay for the stock? Be sure to show your work

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