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Cascade Mining Company expects its earnings and dividends to increase by 8 percent per year over the next 6 years and then to remain relatively
Cascade Mining Company expects its earnings and dividends to increase by 8 percent per year over the next 6 years and then to remain relatively constant thereafter. The firm currently (that is, as of year 0) pays a dividend of $5.25 per share. Determine the value of a share of Cascade stock to an investor with a 14 percent required rate of return.
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