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We expect that FBAS Inc. will pay a dividend of $1.50 per share one year from today, a dividend of $2 per share in years
We expect that FBAS Inc. will pay a dividend of $1.50 per share one year from today, a dividend of $2 per share in years two, and of $3 per share in years three. Assume that the value of the stock at the end of year three to be $18. If your required return on FBAS Inc. stock is 12%, what is the most you would be willing to pay for the stock today if you plan to sell the stock in three years? I need solution steps. Please do not use calculator and excel for solutions.
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