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Posted on Sep 05, 2024

You invest in a startup company that is not expected to pay a dividend for 10 years. If that dividend in 10 years is $5

You invest in a startup company that is not expected to pay a dividend for 10 years. If that dividend in 10 years is $5 and you expect it to grow at 4% forever, what is the value today if you use a 10% discount rate?

The answer should be 35.34, however I keep getting 33.42. Please Help!

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