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1. W Corp. just paid a dividend of $4 per share. The company will increase its dividend by 20% next year,15% annually for two years
1. W Corp. just paid a dividend of $4 per share. The company will increase its dividend by 20% next year,15% annually for two years after that and 5% annually thereafter. If the required return on the Warf stock is 13%, what will a share of stock sell for today? Ans: $70.73
I know the correct answer but when I try to work it out myself I get 64.06.
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