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Which is theamount that should be paid for a stock that will pay a dividend of $5.66 in one year and $6.84 in two years?
Which is theamount that should be paid for a stock that will pay a dividend of $5.66 in one year and $6.84 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.
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