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Boomer Corp currently does not pay any dividends. However, investors expect the first dividend will arrive in 4 years (t=4) for an amount of $2.
Boomer Corp currently does not pay any dividends. However, investors expect the first dividend will arrive in 4 years (t=4) for an amount of $2. Investors expect these dividends will grow at a constant rate of 8% in perpetuity. If Boomers discount rate is 12%, what is the price of the stock today?
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