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QUESTION
Which is the amount that should be paid for a stock that will pay a dividend of $5.60 in one year and $5.55 in two years?
Which is the amount that should be paid for a stock that will pay a dividend of $5.60 in one year and $5.55 in two years? After that, the stock price will grow at a constant 5% per year forever. The appropriate discount rate is 12%.
