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Simpkins Corporation is expanding rapidly, and it does not pay any dividends because it currently needs to retain all of its earnings. However, investors expect
Simpkins Corporation is expanding rapidly, and it does not pay any dividends
because it currently needs to retain all of its earnings. However, investors expect
Simpkins to begin paying dividends, with the first dividend of $ coming years
from today. The dividend should grow rapidly at a rate of per yearduring
Years and After Year the company should grow at a constant rate of per
year. If the required return on the stock is what is the value of the stock
today?
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