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You just bought a share of Global for $52. After careful analysis, you expect Global will pay a dividend of $4.50 next year. Then, you
You just bought a share of Global for $52. After careful analysis, you expect Global will pay a dividend of $4.50 next year. Then, you believe it will increase its dividend by 17% per year for the following 2 years. If your discount rate is 10% APR, at what price should Global sell at to break even? Assume that you will be selling the stock immediately after the third dividend.
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