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Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It will then institute an annual
Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $4.75 with a constant growth rate of 4% with the first dividend at the end of year six. The company will be in business for 25 years total.
What is the stock price if an investor wants a. a 11% return? b. a 14% return? c. a 24% return? d. a 40% return?
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