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You found a firm who pays a dividend of $2.84 per share (with the first payment received one year from now) and will pay this
You found a firm who pays a dividend of $2.84 per share (with the first payment received one year from now) and will pay this amount indefinitely each year with an equity cost of capital = 9%. Its current stock price is $21.93. How much could the price rise from its current price before a prudent investor would no longer consider this a wise purchase?
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