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Problem 6 . Suppose Pleco Aquatics is not paying any dividends, but plans to pay four annual dividends in the amount of $ 5 beginning

Problem

6 .

Suppose Pleco Aquatics is not paying any dividends, but plans to pay four annual dividends in the amount of $

5

beginning in Year

3 .

After that, they do not plan to pay any dividends. What would be the intrinsic value of this stock today if the required rate of return is

3 % ?

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