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U phone is a young start-up company. No dividends will be paid on the stock over the next five years, because the firm needs to
U phone is a young start-up company. No dividends will be paid on the stock over the next five years, because the firm needs to plow back its earnings to fuel growth . The company should then be in a position to pay a $6 per share dividend that will grow by 5% per year. Because of the risk associated with this venture, the appropriate rate of return for this stock is 23%. What is the current share price ?
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