Question: A firm will pay a constant $ 1 8 . 2 5 dividend per share for the next 8 years and then cease to pay

A firm will pay a constant $18.25 dividend per share for the next 8 years and then
cease to pay dividends for the rest of its existence. If the required rate of return on the stock is
16.15%, compute the stocks current fair value. Round to the nearest $0.01. Hint: What is the
fair price of any financial asset?

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