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You believe the company will pay the following dividends for the next four years, respectively: $1.30 per share next year; $1.40 per share in
You believe the company will pay the following dividends for the next four years, respectively: $1.30 per share next year; $1.40 per share in year 2; $1.50 per share in year 3; and $1.60 per share in year 4. After that, you think that dividends will increase by 5 percent per year. If you require 10 percent return, how much are you willing to pay today for one share of this stock?
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
