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Acompany is about to go public. it announces that it plans to pay a $1 per share dividend in its first year of existence and 2$ in its second year. from year 3 onwards dividends are expected to grow at a constant rate of 10% per year. the risk free rate is 5%, the company's beta is 2 and the expected market return is 20%. what should be the ipo stock price?
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