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You are evaluating a firm just earned $5 per share next year and they pay out 60% in the form of dividends next year. What

You are evaluating a firm just earned $5 per share next year and they pay out 60% in the form of dividends next year. What is the value of the firm if you expect dividends to decrease at a rate of 4% annually for three years and then 1% thereafter, the risk-free rate is 3%, the market risk premium is 7% and the beta of the firm is 0.7?

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