Calculate the current price of patience

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(a) Calculate the current price of Patience, Inc. stock that is expected to pay a dividend of $4/share at the end of each year from year 33 through year 61, given a discount rate of 5%. This stock is not expected to pay any dividends before, nor any dividends after, this range of dividend payments.

(b) What do you estimate that the price will be for Patience, Inc. stock 30 years from now (i.e., at )?

Reference no: EM131429280

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