Question: Chapters 7 and 10 Stock Valuation Question 4. (10 points) The company will pay 8 annual dividends of $2.50 each (starting year 1) for the

Chapters 7 and 10 Stock Valuation Question 4. (10 points) The

Chapters 7 and 10 Stock Valuation Question 4. (10 points) The company will pay 8 annual dividends of $2.50 each (starting year 1) for the next eight years. Then the company will pay dividend of $5 (starting at end of year 9) which will continue to be paid forever. Investors require a 14% annual return. What is stock price today

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