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? 6. From Wall Street Journal, AAA company is a young company that currently does not pay a dividend. The company retains all their earnings
6. From Wall Street Journal, AAA company is a young company that currently does not pay a dividend. The company retains all their earnings to finance their growth. However, ten years from now the company is expected to start paying a $1.50 dividend. According to research reports the dividend should then grow by 5% annually forever. Question: If the required return on the stock investment is 13%, what should be AAA's stock price today?
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