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What is the value of pmx stock

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The CFO of Paramax Corporation (PMX) has just informed you that PMX stock will continue to pay a dividend of $4.25 for the next 6 years. The current cost of equity ( re ) for PMX is 8.75%. After that, the CFO expects re to drop to 7.50% and the dividend to increase by 2% per year. What is the value of PMX stock?

Reference no: EM132825956

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