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(b) A common stock pays annual dividends at the beginning of each year. The dividends per share for the most recent year is 1. Assume

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(b) A common stock pays annual dividends at the beginning of each year. The dividends per share for the most recent year is 1. Assume that the dividends increase at the rate of 5% for the first 20 years and 0% thereafter. Suppose the yield rate is 7%. Use the formula in (a) to find the theoretical price of the stock. Leave your answer in terms of and where j and i are rate of interests

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