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You are thinking of buying a stock that has just made an annual dividend of 2.45$. Given that you believe the appropriate cost of capital

You are thinking of buying a stock that has just made an annual dividend of 2.45$. Given that you believe the appropriate cost of capital (discount rate) is 9.6% p.a. (per annum) and that you believe the dividend will grow 2% p.a., what is the maximum price you should bid for this stock?

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