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Cheap & Safe Fuel Energy, Corp. just paid a dividend of $ 3.75 per share. The...

Cheap & Safe Fuel Energy, Corp. just paid a dividend of $ 3.75 per share. The firm’s dividend is expected to grow at 20% for the next five (5) years. After that the growth rate is expected to be 6% forever. If investors require a return of 8% for investing in the stock of companies of similar risk, what is the value of the stock?

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Calculate the current stock price as follows:

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