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It is projected that the share in a new company will not pay any dividends for the next three years. However, it will pay a
It is projected that the share in a new company will not pay any dividends for the next three years. However, it will pay a dividend of $2.00 in year 4 and thereafter the dividend is projected to grow at a constant growth rate of 5 per cent beginning in year 5. If the required rate of return is 10% what is the intrinsic value of the share today?
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