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What is the stockprice today

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Because Vigorous Growth Company retains and invests all of its earnings (in positive NPVprojects!), the firm currently pays no dividends. Investors believe that the firm will pay itsfirst dividend (of $12 per share) 20 years from today. Investors then believe the dividend willremain constant at $12 per share, forever. Given a required return of 6%, what is the stockprice today?

Reference no: EM131332352

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