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You own shares of Ball stock which is expected to pay its first dividend 5 years from today in the amount of $4 per share.
You own shares of Ball stock which is expected to pay its first dividend 5 years from today in the amount of $4 per share. Over the next year (the 6th year), the dividend will grow by 10% after which the growth rate would be a constant rate of 2% per year, forever. The appropriate discount rate for Ball's stock is 12%.
Given the information above, what should a share of Ball sell for today?
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