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Angels Camp Brewing Co. is a young start-up company. No dividends will be paid on the stock during the next eight years because the firm
Angels Camp Brewing Co. is a young start-up company. No dividends will be paid on the stock during the next eight years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $ 4 per share each year for the next six years (i.e., D9 = D10 = = D14 = $4). It is then expected to pay dividend of $7 per share each year thereafter. If the required return on this stock is 7%, what would you pay for the stock today?
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