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Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year
Combined Communications is a new firm in a rapidly growing industry.
The company is planning on increasing its annual dividend by 15 percent
a year for the next 4 years and then decreasing the growth rate to 3.5
percent per year. The company just paid its annual dividend in the
amount of $0.30 per share. What is the current value of one
hare of this
stock if the required rate of return is 16 percent?
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