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A company is a young company that currently does not pay a dividend. The company retains all their earnings to finance their growth. Ten years

A company is a young company that currently does not pay a dividend. The company retains all their earnings to finance their growth. 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.

Required: If the required return on the stock investment is 13%, what should be the company's stock price today?

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