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What is the current share price

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TP Inc. is a young start-up company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a $5 per share dividend at the end of year 10 and thereafter it will increase the dividends by 2% per year forever. If the required rate of return on this stock is 8%, what is the current (today's) share price?

Reference no: EM132345634

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