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Global Tek is a new firm in a rapidly growing industry The company is planning on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to

Global Tek is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next four years and then decreasing the growth rate to 3.5 percent per year. The company just paid its annual dividend in the amount of $.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5 percent?

 

Apr 05 2020 View more View Less

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