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Paddy Field Limited has just paid a dividend of $1.50. Due to the current financial difficulties, Paddy Field will not be paying any dividend for
Paddy Field Limited has just paid a dividend of $1.50. Due to the current financial difficulties, Paddy Field will not be paying any dividend for the next year. Paddy Field is expected to resume paying an annual dividend of $1 in year 2 and this dividend is expected to increase by 6 percent annually thereafter. What is the value of this stock in three years if the required return is 15 percent?
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