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15) Harrys Hat Shop is a young start-up company. No dividends will be paid on the stock over the next five years, because the firm

15) Harrys Hat Shop is a young start-up company. No dividends will be paid on the stock over the next five years, because the firm needs to plow back its earnings to fuel growth. The company will then begin paying a $2.00 per share dividend and will increase the dividend by seven percent per year thereafter. If the required rate of return on this stock is 14 percent, what is the current value of the stock?

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