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URGENT: PLEASE ANSWER ASAP AND I WILL UPVOTE! (Suggested time:10 minutes; Difficulty level: Very Easy) (10 marks) Company Fluffs R Us, which is in the
URGENT: PLEASE ANSWER ASAP AND I WILL UPVOTE!
(Suggested time:10 minutes; Difficulty level: Very Easy) (10 marks) Company Fluffs R Us, which is in the business of selling plush toys to cat owners, recently paid $0.34 dividend on each share. The company pays dividends every year and dividends are expected to grow at a rate of 12% every year in the first ten years and then grow at 5% every year after that (forever). The discount rate is 7%.
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What is the share price?
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