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The Very Cool Company (VCC) just paid a dividend of $1.00 per share. The company will increase its dividend by $1.00 this upcoming year, and
The Very Cool Company (VCC) just paid a dividend of $1.00 per share. The company will increase its dividend by $1.00 this upcoming year, and then from that point in time forward the dividend will grow annually at the industry average rate of 1%. We observe that the expected return on VCC is 9% per year. Calculate the price that a share of stock in VCC should trade for today.
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