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The Dalton Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent a
The Dalton Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 20 percent a year for the next four years and then decreasing the growth rate to 5 percent per year. The company paid its annual dividend in the amount of $1.00 per share yesterday. What is the current value of one share of this stock if the required rate of return is 9.25 percent?
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