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Dravo Corporation shares currently pay a dividend at a rate of two dollars per share. Said dividend is expected to increase at a rate of
Dravo Corporation shares currently pay a dividend at a rate of two dollars per share. Said dividend is expected to increase at a rate of 9% per year for the next three years, 7% per year for the next two years and 4% per year in subsequent years. What is the value of a share in this company for an investor who demands a rate of return of 24%?.
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