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Company A pays no dividend at the present time. Starting in Year 5, the firm will pay a dividend of $2.00 per share and it
Company A pays no dividend at the present time. Starting in Year 5, the firm will pay a dividend of $2.00 per share and it expects to increase its dividend at an annual rate of 3.00 percent indefinitely. How much should you pay per share to purchase this stock today at a required return of 11.88 percent?
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