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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 $2.00 per share in
Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $2.00 per share in 5 years. This dividend will grow at 15 percent indefinitely. Using a 17 percent discount rate, compute the value of this stock.
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