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Suppose you expect dividend in the first year is $6.00 and for the following four years, its $10.50 per year. After the fifth year, the
- Suppose you expect dividend in the first year is $6.00 and for the following four years, its $10.50 per year. After the fifth year, the dividend will grow at a constant rate of 10 percent per year. The required return is 15 percent. What is the value of the stock today? What is the value of the stock after one year?
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