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Horse and Buggy Inc. is in a declining industry. Sales, earnings and dividends are all shrinking at a rate of -10% per annum. The current
Horse and Buggy Inc. is in a declining industry. Sales, earnings and dividends are all shrinking at a rate of -10% per annum. The current share price for Horse and Buggy is $1.09 and required rate of return of 12% per annum. Based on the dividend growth model valuation, what is the value of a Horse and Buggys share next year? Please round to the nearest penny.
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