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A new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next four
A new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next four years and then decreasing the growth rate to 3.50% per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 15.50%?
$2.04 |
$1.82 |
$2.71 |
$2.49 |
$3.05 |
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