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18. (8 points) Hayley Motorcycle Company just paid a dividend of $1.2 today, and is expected to pay a dividend in year 1 of $1.6, a dividend in year 2 of $2.1, a dividend in year 3 of $3, and a dividend in year 4 of $4. After year 4, dividends are expected to grow at the rate of 1.5% per year. An appropriate required return for the stock is 7.9%, using the different- stage growth model, the stock should be worthtoday.

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