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you are evaluating the purchase of common stock of red inc. you expect that it will pay a dividend of $2 in one year, $2.50

you are evaluating the purchase of common stock of red inc. you expect that it will pay a dividend of $2 in one year, $2.50 in year two and $3 in year three. in three years you plan to sell the stock for $40 per share. if your required return is 10% how much would you pay for the stock today

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