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Combined Communications is a new firm in a rapidly growing industry. The companyis planning on increasing its annual dividend by 20 percent a year for
Combined Communications is a new firm in a rapidly growing industry. The companyis planning on increasing its annual dividend by 20 percent a year for the next 5 years and then decreasing the growth rate to 5.5 percent per year. The company just paid its annual dividend in the amount of $0.65 per share.
What is the current value of this stock if the required rate of return is 14.5 percent?
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