About the dividend initiation and stock value

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Dividend Initiation and Stock Value.

A firm does not pay a dividend. It is expected to pay its first dividend of $0.60 per share in two years. This dividend will grow at 9 percent indefinitely. Use a 10.5 percent discount rate. Compute the value of this stock. (Round your answer to 2 decimal places.)

Reference no: EM131900896

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