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The Frenall Company just paid a common stock dividend of $4.00 per share. The required rate of return on Frenall stock is 18.4 percent. Due to a major restructuring of the company’s production process, Frenall’s dividends are expected to decline by 25 percent in Year 1, and 14 percent in Year 2. From that point on, the company’s dividends are expected to grow at a rate of 6.4 percent per year forever. Given these expectations, compute the current equilibrium market price of Frenall’s stock.

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