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Holyrood Co. just paid a dividend of $1.25 per share. The company will increase its dividend by 24% next year and will then reduce its
Holyrood Co. just paid a dividend of $1.25 per share. The company will increase its dividend by 24% next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6% dividend growth, after which the company will keep a constant growth rate forever. If the required return on Holyrood stock is 10%, what will a share of stock sell for today?
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