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QUESTION
The company just made a dividend payment. Next year's (expected) dividend per share is $5 in t=1, then $7.5 in t=2, then $10 in t=3. After that, the...
The company just made a dividend payment. Next year's (expected) dividend per share is $5 in t=1, then $7.5 in t=2, then $10 in t=3. After that, the expected dividend will grow forever at 2%. The appropriate discount rate is 12%. What is the fair market price of the stock?
