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A firm will pay a quarterly dividend per share of $1.80 at the end of...

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Accounting

A firm will pay a quarterly dividend per share of $1.80 at the end of each of the next 8 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.8 percent, forever. The appropriate rate of return on the stock is 15 percent, compounded quarterly. What is the current stock price? (Hint: rate of return is quoted in nominal term, i.e., per year. You need to find quarterly rate of return and use it as the discount rate.)

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