Find the current price of a stock

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Find the current price of a stock if it is expected to pay a dividend of $5 per year. It just paid a dividend and dividends are expected to remain constant at $5 for the next 6 years (the last $5 dividend will occur at the end of year 6). After that, the annual dividend is expected to decrease to $2 per year and remain at $2 indefinitely. The expected return is 18%.

Reference no: EM132703669

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