You are considering buying a company's stock. This stock will pay you a $2 dividend...
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You are considering buying a company's stock. This stock will pay you a $2 dividend per share at the end of each of next 3 years. At the end of three years (immediately after the 3rd dividend payment), you expect to sell your stock for $45 per share. What is the fair value of the stock to you? The proper discount rate is 10%.
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