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A company currently pays no dividend. It is expected that it is going to pay the first dividend of $5/share in four years. After that,
A company currently pays no dividend. It is expected that it is going to pay the first dividend of $5/share in four years. After that, the dividends are expected to grow at 5% per year indefinitely. The required return of this stock is 10%. What is the intrinsic value of the stock?(Hint: Pay attention to the timing of the cash flows.)
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