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Camel Company is a small start - up firm that will institute a dividend payment, a S 0 . 2 5 dividend for the first
Camel Company is a small startup firm that will institute a dividend payment, a S dividend for the first time at the end of this year. The company expects rapid growth over the next four years and will increase its dividend to $ then to $ and then to $ before settling into a constant growth dividend pattern with dividends growing at every year. If you believe that company will deliver this dividend pattern and you desire a return on your investment, what price should you pay for this stock?
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