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OMG Corporation just paid a $2.10 annual dividend on each share. It is planning on increasing its dividend by 21 percent a year for the
OMG Corporation just paid a $2.10 annual dividend on each share. It is planning on increasing its dividend by 21 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 7.60 percent. Calculate the current value of one share of this corporation's stock. |
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