What is the current value of one share of this stock

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Reference no: EM132060743

Xynga is a new firm in a rapidly growing industry.

The company is planning on increasing its annual dividend by 18 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year.

The company just paid its annual dividend in the amount of $2.50 per share. What is the current value of one share of this stock if the required rate of return is 8.00 percent?

Reference no: EM132060743

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