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Grumpys Gondolas is expected to pay its first annual dividend of $1.10 per share in Year 3. Starting in Year 6, the company

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Year present value factor of 13.1% 0.88417 0.78176 0.69121 0.61115 0.54036 Cash flows $0.00 $0.00 $1.10 $1.10 $1.10 $11.47 3

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