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New Gadgets, Inc. is a growing, young company. The firm expects to pay annual dividends of $0.55, 0.80, and $1.10 per share over the next
New Gadgets, Inc. is a growing, young company. The firm expects to pay annual dividends of $0.55, 0.80, and $1.10 per share over the next three years, respectively. Afterwards, dividends are projected to increase by 5% annually. What is the current value of this stock if investors require a 16% return?
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