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Storico Co. just paid a dividend of $1.55 per share. The company will increase its dividend by 24 percent next year and will then reduce
Storico Co. just paid a dividend of $1.55 per share. The company will increase its dividend by 24 percent next year and will then reduce its dividend growth rate by 6 percentage points per year until it reaches the industry average of 6 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on Storico stock is 16 percent, what will a share of stock sell for today? |
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