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A company just paid a $0.40 dividend per share (Do). The dividend is expected to grow at 8% per year for the next 4 years
A company just paid a $0.40 dividend per share (Do). The dividend is expected to grow at 8% per year for the next 4 years and then to grow at 4% per year forever. The required rate of return is 10%. Calculate the expected value of the dividend in 5 years. Calculate the share price after 4 years (P_4). Calculate the share price today (Po)
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