Question: Currently, Non-Stick Gum Inc. pays no dividend. However, analysts fore cast that in 4 years Non-Stick will pay its first annual dividend of $.50 and

Currently, Non-Stick Gum Inc. pays no dividend. However, analysts fore· cast that in 4 years Non-Stick will pay its first annual dividend of $.50 and dividends will grow at 6% per year thereafter. If stocks with similar risk to the equity of Non-Stick Gum currently earn a return of 12%, estimate the current share price of Non-Stick.

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