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Consider a stock that currently pays no dividend. In one year, it is expected to a pay a $1 dividend. The year after it will
Consider a stock that currently pays no dividend. In one year, it is expected to a pay a $1 dividend. The year after it will pay $2 for three years. After that, the dividends will grow at a constant rate of 10% per year forever. if you require a 12% rate of return on the stock, what is its value to you today?
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