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You expect a share of stock to pay dividends of $1 and $2 in each of the first two years. It will not pay any
You expect a share of stock to pay dividends of $1 and $2 in each of the first two years. It will not pay any dividends in year 3 and will continue paying dividends of $4 and 5$ for years 4 and 5, respectively. The stock is expected to sell for $30 at the end of the fifth year. What is the stock price if the discount rate is 10%?
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