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Apple, a leading technilogy company, issues stocks to finance the development of one of its products. Profit growth in the first, second and third years

 

Apple, a leading technilogy company, issues stocks to finance the development of one of its products. Profit growth in the first, second and third years is expected to be 6%, 8%, 10% annually, respectively, after which it will grow steadily at 6%. The last dividend paid was $12 per share. Calculate the fair value of the common stock if the investor's required rate of return is 10%.

 

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