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A stock is expected to pay a $1 dividend at the end of the current year. Dividends are expected to grow at a 5% annual
A stock is expected to pay a $1 dividend at the end of the current year. Dividends are expected to grow at a 5% annual rate for the next 2 years. Assume that the stock will be worth $20 in 2 years time. If you want to make a 10% annual return, what is the intrinsic value of a share of the stock?
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