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You own one stock of a consulting company that will pay you from next year to forever. Next year the payment is $ 1 0

You own one stock of a consulting company that will pay you from next year to forever. Next

year the payment is $

100,

and this amount increases every year to account for inflation. Assume

the rate of inflation is

3 %,

and the market interest rate is

8 % .

What is the share worth in present

value?

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