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You are considering purchasing stock. The stock is expected to pay a dividend of $ 4 1 per share. The consensus of investors is that

You are considering purchasing stock. The stock is expected to pay a dividend of

41

per share. The consensus of investors is that these dividends will increase at a rate of

3

percent per year for the indefinite

future, and the interest rate is

13

percent.

The price of the stock should be

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