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You are examining the Andrews Company, which has just paid a dividend of $1.25. It has announced that it will grow its dividend by 12%

You are examining the Andrews Company, which has just paid a dividend of $1.25. It has announced that it will grow its dividend by 12% each year for the next three years. It will then grow the dividend by 4% thereafter. How much would you be willing to pay for a share in Andrews today if your required rate of return is 10%?

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