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You have been asked to value International Motors stock. They currently pay no dividends, but they plan to start paying dividends 8 years from now.
You have been asked to value International Motors stock. They currently pay no dividends, but they plan to start paying dividends 8 years from now. At that time, they will pay a $6/share yearly dividend which they expect to increase at 2% per year. Assuming that comparable investments have an 11% discount rate, what value would you give to International Motors stock? [Please do not put a "$" or "," in your answer]
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