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Business, 06.05.2020 08:24 dxnimxriee

You plan on purchasing the stock of Red Cigars Inc. and you expect it to pay a dividend of $3.15 in 1 year, $3.55 in 2 years, and $4.05 in 3 years. You expect to sell the stock for $95.00 in 3 years. If your required return for purchasing the stock is 11 percent, how much would you pay for the stock today?

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