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Sunny Inc. has just paid a dividend of $3.40. An analyst forecasts annual dividend growth of 8 percent for the next five years; then dividends
Sunny Inc. has just paid a dividend of $3.40. An analyst forecasts annual dividend growth of 8 percent for the next five years; then dividends will decrease by 1 percent per year in perpetuity. The required return is 11 percent (effective annual return, EAR). What is the current value per share according to the analyst?
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