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Storico CO. just paid a dividens of $3.85 per share. The company will increase its dividend by 20% next year and will then reduce its
Storico CO. just paid a dividens of $3.85 per share. The company will increase its dividend by 20% next year and will then reduce its dividend growth rate by 5% each year until it reaches the industry average of a 5% annual growth in dividends. You expect the company to maintain the 5% growth rate indefinitely at this point in time. If the required return on Storico stock is 13%, what is a fair price for a share today?
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