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Consider the following three companies: company A, company B and company C. Assume that these companies have an opportunity cost of capital of 10%. Company
Consider the following three companies: company A, company B and company C. Assume that these companies have an opportunity cost of capital of 10%.
Company C is expected to pay a dividend of 5 next year. Then, dividend growth is expected to be 20% a year for five years (i.e., until year 6) and zero thereafter. What is the market price of company C?
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