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  3. c. at present, a company pays a dividend of tk. 4.

c. At present, a company pays a dividend of Tk. 4.50 per share on its...

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Finance

c. At present, a company pays a dividend of Tk. 4.50 per share on its common stock. The company expects to increase the dividend at 13% annual rate for the first three years and at a 14% rate for the next two years, and then grow the dividend at a 12% rate forever. This growth pattern is in keeping the expected life cycle of earning. The yield of the investors to invest in this stock is (14+last digit of your ID)%. What value should an investor place on a share of this stock? [06]

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