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Company Badger Outstanding shares = 20,000 WACC = 10.0% Debt = $250,000 Growth rate after yr. 4 = 4.0% Bond price = $1,300 Next expected

Company Badger

Outstanding shares = 20,000

WACC = 10.0%

Debt = $250,000

Growth rate after yr. 4 = 4.0%

Bond price = $1,300

Next expected dividend = $2.00

Year cash flows:

Year 1 = $10,000

Year 2 = $25,000

Year 3 = $35,000

Year 4 = $50,000

Calculate the value (price) of Company Badger's stock today using the Dividend Growth model (round to the nearest dollar - ex: 123)

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