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A company is not expected to pay dividends in the first seven years. The company is then expected to pay annual dividends in the amount
A company is not expected to pay dividends in the first seven years. The company is then expected to pay annual dividends in the amount of $2.00 per year starting the end of year eight until (and including) the end of year 15 . Dividends are then expected to grow by 5% per year thereafter, in perpetuity. Assuming a required return of 12% per year, calculate the value of one share of the company. Show your work
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