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In order to maximize reinvestment in itself, a start - up firm will pay no dividends on its shares over the next 4 years. The
In order to maximize reinvestment in itself, a start-up firm will pay no dividends on its shares over the next 4 years. The company will pay a dividend of $3.00 per share 5 years from today and will increase the dividend amount by 5.00% per year, thereafter. If investors' required rate of return 12.75%, compute the maximum share price an investor would be willing to pay today? Round to the nearest $0.01.
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