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You are considering the purchase of a share of stock. If you buy the share, you will expect to receive the following dividends: 1.25 six
You are considering the purchase of a share of stock. If you buy the share, you will expect to receive the following dividends: 1.25 six months from now, 1.75 eighteen months from now, 2.00 thirty months from now, and thereafter dividends will continue to be paid at 12-month intervals and will increase at the rate of 6% per year. The effective annual interest rate is 14%. Find the current value of this share of stock
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