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You expect a company to pay a dividend of $4 per share next year and you expect dividends to grow at an annual rate of

You expect a company to pay a dividend of $4 per share next year and you expect dividends to grow at an annual rate of 1% for each year after that. The risk-adjusted discount rate is 10%. What is the present value of the dividend stream?

a) $22.44

b) $44.44

c) $56.25

d) $67.55

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