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2.Start-Up Company has stated that it expects to pay no dividends until the end of year 5. At that time management plans to pay $2.00
2.Start-Up Company has stated that it expects to pay no dividends until the end of year 5. At that time management plans to pay $2.00 per share and grow this dividend at 6% indefinitely. Assuming this dividend plan and a required return of 12%, do the following: A. Show this $2.00 cash flow on a time line B. Calculate the value of this stock at the end of year 5 C. Calculate the present value of this stock INPUT Div g 1 2 4 5 6 7 8 9 10 11 12 OUTPUT PV A. . C. and so on... r $0.00
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