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Investors are being offered shares in David Motors. David motor will pay their first dividend of Rs. 650 per share at the end of year
Investors are being offered shares in David Motors. David motor will pay their first dividend of Rs. 650 per share at the end of year 5. The expected growth rate is 8% a year. What should be the price of the stock if the investor want 25% return on investment? What do you think was the reason for the company to not pay dividends in the first 4 years? List at least 3 reasons
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