Question: A stock will pay a $5 dividend next year, a $4 dividend two years from now, and a $3 dividend three years from now. Starting

A stock will pay a $5 dividend next year, a $4 dividend two years from now, and a $3 dividend three years from now. Starting in year 4, the stock will be paying a dividend of $2.5 in perpetuity. The appropriate risk-adjusted discount rate is 12%. What is the current price of this particular stock?

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