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Using the common stock valuation formula calculate the value of a share of stock if it is expected to pay $5 in dividends at the
Using the common stock valuation formula calculate the value of a share of stock if it is expected to pay $5 in dividends at the end of the year, in addition the dividends are expected to grow at a rate of 4 percent forever, and the investor's required rate of return is 12 percent.
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