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  3. xyz firm just paid a dividend of $2.00 per share i

XYZ firm just paid a dividend of $2.00 per share is expecting a period of...

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Accounting

XYZ firm just paid a dividend of $2.00 per share is expecting a period of intense growth. As a result, the firm has decided to increase its annual dividend by 10% a year for the next 40 years, and by 5% a year thereafter forever. The required rate of return is 15%.

What should be the value of this stock 25 years from today?

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