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True or False? -- A firm is forecasted to pay a $10 dividend at the end of year one and a $10 dividend at the

True or False? -- A firm is forecasted to pay a $10 dividend at the end of year one and a $10 dividend at the end of year two. At the end of the second year the stock will be sold for a forecasted price of $144. If the annual discount rate is 10%, the price of the stock in year one is forecasted to be $140.

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