Question 2 (1 point): Gamma Inc. is a mature manufacturing firm. The company just paid a $9.40 dividend, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a 10 percent return on this stock, what will you pay for a share today? Show your calculation steps clearly. Current Dividend Dividend growth rate Required return Share price today $ 9.40 -4.0% 10.0%

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