Paid for stock that will pay dividend

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Reference no: EM131537003

Which is the amount that should be paid for a stock that will pay a dividend of $3.23 in one year and $3.57 in two years? After that, the stock price will grow at a constant 5% per year forever. The appropriate discount rate is 12%. Show your answer to the nearest $.01. Do not use the $ sign in your answer.

Reference no: EM131537003

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