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Kathy Company has declared a dividend of $2.5 per share for the current year. The company has been and is still following a policy of
Kathy Company has declared a dividend of $2.5 per share for the current year. The company has been and is still following a policy of enhancing its dividends by 10 percent every year. An investor who is considering the purchase of the shares of this company has a required rate of return, also known as the discounted rate of 15 percent. What would be the intrinsic value of Kathys share?
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