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A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $2.00 per share in five years. After
A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $2.00 per share in five years. After they begin, the dividends are expected to grow forever at a constant rate of 5.0% per year. If investors require a return of 10.0% per year to hold the stock, what is the stock's intrinsic value per share? A) $29.03 B) $28.02 C) $27.93 D) $28.85 E) $27.32
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