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A company paid a dividend of $0.45 per share. It suspend its dividend payment for three years and resume dividend payment in 4 years ($0.45
A company paid a dividend of $0.45 per share. It suspend its dividend payment for three years and resume dividend payment in 4 years ($0.45 per share). After that, the dividend is expected to grow by 7% a year for 3 years, and at a long run rate of 4% per year thereafter. The required rate of return for such a stock is equal to 10%. The current stock price is $6.50
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