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Company Y plans on increasing its annual dividend by 10% a year for the next three years and then decreasing to a perpetual growth rate
Company Y plans on increasing its annual dividend by 10% a year for the next three years and then decreasing to a perpetual growth rate to 2.6% per year. The company just paid its annual dividend in the amount of $2.00 per share. What is the current value of one share of this stock if the required rate of return is 12.6%?
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