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A young start-up company needs to plow back its earnings to fuel growth. The company will pay no dividends on its stock until it pays its first dividend of S12 per share 14 years from today.

A young start-up company needs to plow back its earnings to fuel growth. The company will pay no dividends on its stock until it pays its first dividend of S12 per share 14 years from today. Thereafter, it will increase the dividend by 3 percent per year. If the required return on this stock is 9 percent, what is the current share price? Enter your answer as dollars with 2 digits to the right of the decimal point in the box shown below.

Apr 12 2021 View more View Less

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