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A company has a 15.50% required rate of return and will not pay any dividends for the next seven years. At the beginning of year
A company has a 15.50% required rate of return and will not pay any dividends for the next seven years. At the beginning of year 8, it will pay a dividend of $4.75 per share. The dividend (always paid at the beginning of a year) is expected to grow at 9.75% annually from that point onwards. Calculate the stock price today.
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