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XanEx is a new firm that Will pay an annual dividend of $1 a share next year. The firm plans to increase its dividend by
XanEx is a new firm that Will pay an annual dividend of $1 a share next year. The firm plans to increase its dividend by 20 percent a year from then on for the following Three years. Then the annual dividend growth rate forever will be 5 percent lower than the constant required rate of return. If the required rate of return is 10.25 percent, what is one share of this stock worth today?
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