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Company X just paid dividend and is expecting both earnings and dividends to grow by 15% in year 1, 0% in year 2, by 5%
Company X just paid dividend and is expecting both earnings and dividends to grow by 15% in year 1, 0% in year 2, by 5% in year 3, and at a constant rate of 10% in year 4 and thereafter. The required return on Company Xis 15%, and it sells at its equilibrium current price $21.88. What is the value of its expected dividend in year 1?
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