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Problem DB Co. is expected to pay $.24 per share on its stock commencing three years from now. The firm is further expected to increase
Problem DB Co. is expected to pay $.24 per share on its stock commencing three years from now. The firm is further expected to increase its dividend by 3 percent per year commencing five years from now, i.e., the first increased dividend will occur in year five. What is the current value of one share of this stock at a discount rate of 11 percent?
$2.37
please answer in a simple way
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