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Question(s) / Instruction(s):

Hudson Corporation is expected to pay $2.50 dividend after one year, $3.00 after 2 years, $3.50 after 3 years, and then $4.00 a year uniformly after fourth and subsequent years. If the stockholders of Hudson require 16% return on their investment, find the price of the stock now. What is its price just after the payment of the first $2.50 dividend?

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