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You will hold a stock for 5 years, in years 1 and 2 it will pay $3 dividends each year, in year 3 it will
You will hold a stock for 5 years, in years 1 and 2 it will pay $3 dividends each year, in year 3 it will pay $3.50 dividend, then in years 4 and 5 it will pay $4 each year. If you will sell it in year 5 for $56, and your required rate of return is 10.5%, what is it worth?
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