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Which is theamount that should be paid for a stock that will pay a dividend of $1.96 in one year and $3.74 in two years?
Which is theamount that should be paid for a stock that will pay a dividend of $1.96 in one year and $3.74 in two years? After that, the stock pricewill grow at a constant 5% per year forever.The appropriate discount rate is 12%.Show your answer to the nearest $.01.Do not use the $ sign in your answer.
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