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You are investing in a share of stock. The share will pay a dividend of $8.21 at the end of the first year. The dividend
You are investing in a share of stock. The share will pay a dividend of $8.21 at the end of the first year. The dividend is expected to grow forever at a rate of 2.72% per year. You require a 10.15% rate of return on the stock investment. What would be a fair price for this share of stock in 8 years? (Answer to nearest $0.01)
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