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A stock will pay dividends of $ four years from today, $ five years from today, and $ six years from today. There will be no dividend payments prior to year 4. After year 6, the growth rate in dividends per year is expected to be 6% forever. The required return on the stock is 11%. P3, the price of the stock 3 years from now, is estimated to be $36.35. P0, the price of the stock today, should be $_____. Do not round any intermediate work. Round your final answer to 2 decimal places (ex: $12.3456 should be entered as 12.35).

Financial Management, Finance

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