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You wish to invest in some common stock. The dividend last year was $2.80 and the company has announced that they will be making dividends
You wish to invest in some common stock. The dividend last year was $2.80 and the company has announced that they will be making dividends at a steady amount each year increased by 4% per year. If the current discount rate is 10%, what is the stock worth? Please pay attention to the amount of dividend payed at the end of the first year.
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