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E Inc. plans to retain and reinvest all of its earnings for the next two years; at the end of year 3 the firm will
E Inc. plans to retain and reinvest all of its earnings for the next two years; at the end of year 3 the firm will pay a special dividend of $5 per share. Beginning in year 4, the firm will begin to pay a dividend of $1 per share, which is expected to grow at a 3% rate annually forever. The required rate of return is 12%. What is the current share price? The answer is 11.47. I need FULL SOLUTIONS please, thank you.
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