Consider a stock that currently paid a $4 dividend. In one year, it is expected...
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Consider a stock that currently paid a $4 dividend. In one year, it is expected to pay a $5 dividend. The year after, it will pay $7 for four years. After that, the dividends will grow at a constant rate of 8% per year forever. If you require a 10% rate of return on the stock, what is its value to you today?
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