EOC Problems $11-18$

Question $11$ of $15$

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Problem $11-18-$ Dividend Discount Model

A company paid a $$1\mathrm{.}5$ per$-$share$-$per$-$year dividend last year. It is expected to increase at an annual $8\%$ growth rate to year five. After year five, the dividend will grow at $6\%$ per year indefinitely. Suppose that the required rate of return is $10\%.$

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