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Calculate the present value of a stock if this stock is expected to pay $2.5 annual...

Calculate the present value of a stock if this stock is expected to pay $2.5 annual dividend in next 3 years, and it is expected to pay $3.5 annual dividend for year 4 to year 6. In year 7 and thereafter it pays $5 constant dividend forever. The interest rate is 8%. Please provide excel formula and explain your step-by-step calculation in your answer.

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jeff jeffy answered 2 years ago
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