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Dismal.Com is a producer of depressing Internet products. The company is currently not paying dividends, but its chief financial officer thinks that starting in 3
Dismal.Com is a producer of depressing Internet products. The company is currently not paying dividends, but its chief financial officer thinks that starting in 3 years it can pay a dividend of $15 per share, and that this dividend will grow by 20% per year. Assuming that the cost of equity of Dismal.Com is 35%, value a share based on the discounted dividends.
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