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Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.12 per share in

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $0.12 per share in two years. This dividend will grow at 10 percent indefinitely. Using a 12 percent discount rate, compute the current value of this stock.

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a) $8.29 b) $6.34 c) $5.55 d) $5.36

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