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You want to invest in a stock that pays $ 2 3 annual cash dividend for the next 1 2 years. At the end of

You want to invest in a stock that pays $

23

annual cash dividend for the next

12

years. At the end of the

12

years, you will sell the stock for $

50 .

If you want to earn

13 %

on this investment, what is a fair price for this stock, today?

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