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Sam's Club just paid a dividend of $1.35 per share. The company will increase its dividend by 15% next year and will then reduce its
Sam's Club just paid a dividend of $1.35 per share. The company will increase its dividend by 15% next year and will then reduce its dividend growth rate by 3 percentage points per year until it reaches the industry average of 6% dividend growth, after which the company will keep a constant growth rate forever. If the required return on Sam's Club stock is 8%, what will a share of stock sell for today
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