New firm in rapidly growing industry

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Reference no: EM131497355

The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 24 percent a year for the next 3 years and then decreasing the growth rate to 4.5 percent per year. The company just paid its annual dividend in the amount of $1.57 per share. What is the current value of one share of this stock if the required rate of return is 9.8 percent?

Reference no: EM131497355

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