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XYZ paid its first annual dividend yesterday in the amount of $.25 a share. The company plans to double each annual dividend payment for the

XYZ paid its first annual dividend yesterday in the amount of $.25 a share. The company plans to double each annual dividend payment for the next three years. After that time, it plans to pay a constant $2.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 10 percent?

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