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Problem 4 (6 points, 8 minutes) A Company paid its first annual dividend yesterday in the amount of $0.15 a share. The company plans to
Problem 4 (6 points, 8 minutes) A Company paid its first annual dividend yesterday in the amount of $0.15 a share. The company plans to double the dividend in each of the next 3 years. Starting in Year 4, the firm plans to pay $1.50 a share indefinitely. What is the price of the stock today if the market rate of return on similar securities is 13.8 percent
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