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A start-up company named GoGo Inc. has not paid a dividend since inception and is not planning to pay dividends for the next 10 years.
A start-up company named GoGo Inc. has not paid a dividend since inception and is not planning to pay dividends for the next 10 years. At the following year, GoGo will start paying an annual dividend of $36 per share and thereafter it will increase the dividends by 5% per year forever. If the required rate of return on this stock is 12%, what is the price of this stock today?
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