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Question 1 Your company is not expected to pay dividends in the first four years. The company is then expected to pay the following dividends:
Question 1 Your company is not expected to pay dividends in the first four years. The company is then expected to pay the following dividends: End of year five: End of year six: End of year seven: $1.00 per share $1.10 $1.20 per share per share Dividends are expected to grow at 4% per year thereafter, in perpetuity. Assuming a required return of 15% per year, calculate the value of one share of your company. Show your work
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