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XYZ company currently pays a dividend of $1.20 per share. Dividends are expected to increase at the rate of $0.10 per share for the next

XYZ company currently pays a dividend of $1.20 per share. Dividends are expected to increase at the rate of $0.10 per share for the next eight years. Determine the current value of the common stock to an investor who expects to be able to sell the stock for $28 after 5 years. Assume that the investor requires a 12 percent rate of return on the security.

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