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A company announces a new preference share with a price of $40 per share. The company will not pay any dividend in year I but

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A company announces a new preference share with a price of $40 per share. The company will not pay any dividend in year I but will pay $1 at the end of the second year, and the dividend will grow at the rate of 3% in the next 5 years. Thereafter, the company will pay $4 forever. Is it worth buying this share? Show proper calculations in support of your decision. Assume the discount rate as 99 For the toolbar, prons ALT.F10 PC) ALT.PN.10 (Mac)

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