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You are considering the purchase of a common stock that will not pay any dividend for next 3 years. The first dividend will be $4
You are considering the purchase of a common stock that will not pay any dividend for next 3 years. The first dividend will be $4 in the end of year 4. You expect this stock to have a constant growth rate of 5 percent since then. If you require a 14 percent rate of return, how much should you be willing to pay for this stock?
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