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8-15 Simpkins Ltd. is expanding rapidly, and it currently needs to retain all of its camins hence Noncolant Gown it does not pay any dividends.
8-15 Simpkins Ltd. is expanding rapidly, and it currently needs to retain all of its camins hence Noncolant Gown it does not pay any dividends. However, investors expect Simpkins to begin paying dan Stock valurondends with the first dividend of $0.50 coming 3 years from today. The dividend should grow rapidly-ata rate of 80 per year during Years 4 and 5. After years. The company should row at a constant rate of 7 per year. If the required return on the stock is what is the value of the stock loday? S10-16
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