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a. Johnson Signs Inc. has been able to increase dividends at the rate of 2% per year since the company first started paying dividends in

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a. Johnson Signs Inc. has been able to increase dividends at the rate of 2% per year since the company first started paying dividends in 1957. Johnson has developed a new production technique and can sell their signs at a premium price for the next three years. This immediate revenue boost will allow Johnson to increase dividends at a rate of 12% per year next year, then 10% the following year, and 8% the next year. After that, they intend to revert to their previous slow but steady increase in annual dividends. If current dividends are K2.45 per share and Johnson investors require an annual rate of return of arks) 11%, WHAT IS THE INTRINSIC VALUE PER SHARE FOR THE COMPANY'S STOCK

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