Dividend initiation and stock value

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Reference no: EM131513617

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.90 per share in 4 years. This dividend will grow at 15 percent indefinitely. Using a 17 percent discount rate, compute the value of this stock.

$59.32

$109.25

$58.30

$178.02

Reference no: EM131513617

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