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You read in the paper that Summit Systems will pay a dividend of $1.25 this year. At that point, you expected Summit's dividend to grow

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You read in the paper that Summit Systems will pay a dividend of $1.25 this year. At that point, you expected Summit's dividend to grow by 6.0% per year. Today, you read in the paper that Summit Systems has revised its growth prospects and expects its dividends to grow at a rate of 3.5% per year forever. The firm's equity cost of capital is 11.5%. a. What is the value of a share of Summit Systems stock based on the original expected dividend growth of 6.0% per year? b. If you tried to sell your Summit Systems stock after reading this news, what price would you be likely to get? Why

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