Question: Consider a stock that is going to pay a dividend of $5 in year 1. Dividends are going to be constant from year 1 to

Consider a stock that is going to pay a dividend of $5 in year 1. Dividends are going to be constant from year 1 to year 5. From year 5 to year 6 dividends will grow at a rate of 6%. They will then grow at the rate of 5% each year forever. The required rate of return is 10%. What is the stock price today? (5 points)

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