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Use a financial calculator only Company XYZ aims to gradually reduce its dividend to be able to reinvest more. The company has just paid a
Use a financial calculator only
Company XYZ aims to gradually reduce its dividend to be able to reinvest more. The company has just paid a dividend of $10.00. The company expects dividends to shrink by 10 percent each year for the next 9 years, before growing at a 7 percent rate forever. The required return on the stock is 12 percent. What is the current stock price? [5]
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