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Xynga is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 18 perce

Posted: Sun Jun 05, 2022 7:38 am
by answerhappygod
Xynga is a new firm in a rapidly growing industry. The company
is planning on increasing its annual dividend by 18 percent a year
for the next 4 years and then decreasing the growth rate to 3
percent per year. The company just paid its annual dividend in the
amount of $2.50 per share. What is the current value of one share
of this stock if the required rate of return is 8.00 percent?