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4. Aria NZ, Inc., is a young start-up company. No dividends will be paid on the stock over the next four years because the firm
4. Aria NZ, Inc., is a young start-up company. No dividends will be paid on the stock over the next four years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $8 per share five years from today for six years, and after that, the company will increase the dividend by 3.9 percent per year. The required return on this stock is 10 percent. (Total Question 4: 23 marks) a. What is the current share price? Draw a timeline. (Q4 part a: 17 marks)
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