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Suppose a company is planning to pay dividends with the following schedule: From year 1 to year 9, the company will not pay any dividends.
Suppose a company is planning to pay dividends with the following schedule: From year 1 to year 9, the company will not pay any dividends. In year 10, the company will pay $15 as dividends to each share of stock. Thereafter, the dividends will grow at a growth rate of 5% every year. We also know that shareholders require a return of 10.5% on this stock. Please calculate the Company's current share price. (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) Current share price
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