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After that its dividends are expected to grow at a rate of

A share of stock is expected to pay a dividend of $1 in one year, and $1.50 in two years. After that, its dividends are expected to grow at a rate of 5% per year forever. If the required rate of return on the stock is 8%, What is the current price per share?

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Finance Basics: After that its dividends are expected to grow at a rate of

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