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Foley Inc. has an 10.5% required rate of return. It does not expect to initiate dividends for 10 years, at which time it will pay
- Foley Inc. has an 10.5% required rate of return. It does not expect to initiate dividends for 10 years, at which time it will pay $3.75 per share in dividends. At that time, Denver expects its dividends to grow at 6% forever. What is an estimate of Denver's price in 10 years (P10) if its dividend at the end of year 10 is $3.75? What is its price in today's dollars if you desire a rate of return of 12%?
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