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Help me! A stock recently made a huge dividend payment of $20/share. They plan to reduce their dividend payments by $5/share in each of the
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A stock recently made a huge dividend payment of $20/share. They plan to reduce their dividend payments by $5/share in each of the next 2 years (i.e., they will pay $15/share in year 1 and $10/share in year 2). Afterwards, they will change to a constant dividend growth policy by increasing their dividend by 4%/year, indefinitely. The required return is 15%. How much dividend will be paid year 30 Step by Step Solution
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