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ABC Corp has a strange dividend policy. They will not pay any dividends until 3 years from now. In year 3, they will pay $4/share.
ABC Corp has a strange dividend policy. They will not pay any dividends until 3 years from now. In year 3, they will pay $4/share. In year 4, they will pay $6/share. In year 5, they will pay $10/share. Then afterward, they will increase their dividend payments by 4%/year, forever. R=14%. Calculate the stock price.
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