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Rebound Tourism Inc. is a travel planning establishment. Its shares sold for an average price of $40 per share last year (t = 0) and
Rebound Tourism Inc. is a travel planning establishment. Its shares sold for an average price of $40 per share last year (t = 0) and the management estimates to maintain a constant growth rate in dividends. Last year, it paid a dividend of $0.50 per share to its shareholders.Compute the expected intrinsic price of the stock in year 5. Assume that a) All stocks are fairly priced such that the intrinsic and market values are equal. b) Dividends are paid at the beginning of the year. Please show workings
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