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The RMC is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for
The RMC is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15% a year for the next three years and then decreasing the growth rate to 2.2% per year. The company just paid its annual dividend in the amount of $1.00 per share. Also the required rate of return on the Rocket Medical Co. is 10.50% What is the value of one share of The RMC at time-3? What is the value of one share of The RMC now, time-0?
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