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IBM just paid a dividend of $1.6 per share. You expect IBM's dividend to grow at...

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Finance

IBM just paid a dividend of $1.6 per share. You expect IBM'sdividend to grow at a rate of 9%

per year for the next three years, and then you expect constantdividend growth of 4% forever.

Based on the risk of IBM stock, you require a return of 13%.Using the dividend discount model,

what is the value of IBM stock?

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