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  3. a stock currently does not pay any dividends. the

A stock currently does not pay any dividends. The stock is expected to begin paying...

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Accounting

A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $2.00 per share in five years. After they begin, the dividends are expected to grow forever at a constant rate of 5.0% per year. If investors require a return of 10.0% per year to hold the stock, what is the stock's intrinsic value per share? A) $28.85 B) $29.03 C) $27.32 D) $27.93 E) $28.02
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A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $2.00 per shafe in five years. After they begin, the dividends are expected to grow forever at a constant rate of 5.0% per year. If investors require a return of 10.0% per year to hold the stock, what is the stock's intrinsic value per share? A) $28.85 B) $29.03 C) $27.32 A) $28.85 B) $29.03 C) $27.32 D) $27.93 E) $28.02

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