11. Nat-T-Cat Industries just went public. As a growing firm, it is not expected to pay a...

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11. Nat-T-Cat Industries just went public. As a growing firm, it is not expected to pay a dividend for the first five years. After that, investors expect Nat-T-Cat to pay an annual dividend of $1.00 per share (i.e., Do 1.00), with no growth. If the required return is 10%, what is the current stock price?

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Financial Markets and Institutions

ISBN: 978-0321280299

5th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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