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An investor is contemplating on buying a stock today. The stock's next dividend is $10 per share and he requires a 15% return on the
An investor is contemplating on buying a stock today. The stock's next dividend is $10 per share and he requires a 15% return on the investment. The dividend increases by 15% per year. What is the value of the stock today? What is the value of the stock in 3 years? If the stock is selling at $90, is it worth buying? why?
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