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Need help on this Finance problem: Lets say a company pays no dividends, but instead reinvests its earnings into maintaining fast growth in hopes it
Need help on this Finance problem: Lets say a company pays no dividends, but instead reinvests its earnings into maintaining fast growth in hopes it will pay dividends in 5 years. The expected dividend is 5 dollars and the company may grow the dividend about 5% each year. Required return of shareholders is 15%, whats a good estimate of the price of the stock today
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