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OMG Corporation just paid a $1.60 annual dividend on each share. It is planning on increasing its dividend by 16 percent a year for the
OMG Corporation just paid a $1.60 annual dividend on each share. It is planning on increasing its dividend by 16 percent a year for the next 4 years. The corporation will then decrease the growth rate to a rate of 6 percent per year, and keep it that way indefinitely. The required rate of return is 7.10 percent. Calculate the current value of one share of this corporation's stock.
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