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Limco Inc. is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to
Limco Inc. is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $12 per-share dividend in ten years and will increase the dividend by 5% per year thereafter. If the required return on this stock is 13.5%, what is the current share price?
Please Solve using BA II Plus. Show the inputs as follows for example:
N=40, FV=20,000, I/Y=3.5 PMT=0, CPT PV= 10,673
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