What is the value of the stock today, Finance Basics

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What is the value of the stock today

Problem

Suppose you are analyzing the stock of a company. The analysts expect the company to pay dividends of $10 per share at the end of the first year, $12 per share at the end of the second year and $15 per share at the end of the third year. Thereafter, the dividend will decrease at a steady rate of 3%. If the required rate of return is 12%, what is the value of the stock today?

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