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Biaar corporation is planning to pay a dividend of $5, $10, $8 over the next three years. After that, the company will maintain a constant
Biaar corporation is planning to pay a dividend of $5, $10, $8 over the next three years. After that, the company will maintain a constant 5% growth rate in dividends forever. If the required return on stocks with similar risk is 10%.
1. What is the current share price? (10')
2. What is the stock price per share in one year? (10')
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