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You are interested in buying the stock of a company. You expect the following annual dividends for the firm over the next three years: $1.06,
You are interested in buying the stock of a company. You expect the following annual dividends for the firm over the next three years: $1.06, $2.99, $4.77. After the third payment you expect the firm's growth rate to level of to 2.7% annually. If the discount rate for the firm is 0.07 what is the fair price of the stock?
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