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If Masterston, Inc. just paid $2.55 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.5
If Masterston, Inc. just paid $2.55 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.5 percent per year, indefinitely and investors require a rate of return of 11 percent on this stock. What is the current price? What is the price in three years? What is the price in fifteen years?
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