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What is the value of a stock now

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Reference no: EM131434537

What is the value of a stock now that will first pay a annual dividend of $5.00 per share at t=6. It pays no dividend before then. After its starts its dividend at t=6, the firm is expected to continue growing its dividends at a 4% annual rate continuously into the future. Its required return on equity is 10%.

Reference no: EM131434537

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