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Metal Inc. has not issued a dividend. It is management's intention to do so beginning three years from today. The initial annual dividend is expected
Metal Inc. has not issued a dividend. It is management's intention to do so beginning three years from today. The initial annual dividend is expected to be $ Over the subsequent three years the annual dividends are expected to grow by per year and then per year for years before slowing to a permanent growth rate of per year. Determine the value as of today of the dividends that are the result of nonconstant growth. Assume the cost of capital for Metal is per year.
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