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What should a share of warf stock be valued at today

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Warf Co. just paid a dividend of $4.00 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent, after which the company will keep a constant growth rate, forever. If the required return on Wharf stock is 13 percent, what should a share of Warf stock be valued at today?

Reference no: EM132185289

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