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You are evaluating a company's stock. (10 points) Suppose the stock just paid a dividend of $1.75. Dividends are expected to grow at a constant

  1. You are evaluating a company's stock. (10 points)

  1. Suppose the stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 for long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value of the stock today? (5 points)

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