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Caribbean Construction Company expects its earnings and dividends to increase by 8.5% per year over the...

Caribbean Construction Company expects its earnings and dividends to increase by 8.5% per year over the next 6 years and then to remain constant thereafter. The firm currently (year 0) pays a dividend of $3.45 per share. Determine the value of a share of Caribbean Construction Company stock to an investor with a 12.64% required rate of return.

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