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Watson Electric has paid a constant dividend of $1.50 a share for the past 100 years. Yesterday, they announced that the dividend will increase next

Watson Electric has paid a constant dividend of $1.50 a share for the past 100 years. Yesterday, they announced that the dividend will increase next year by 10 percent and will stay at the dividend amount for year 2, after which time the dividends will increase by 2 percent annually. The required return on this stock is 7 percent. What is the current value per share?

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