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A share very recently paid a dividend of $4.00. If the dividend is expected to grow at an annual rate of 5% and the required

A share very recently paid a dividend of $4.00. If the dividend is expected to grow at an annual rate of 5% and the required return (i.e., the market capitalization rate) is 15%, what is the intrinsic value of the share? The answer is NOT 40 its 42.

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