Analysts expect this dividend to grow

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Lemma Systems will pay an annual dividend of $0.50 one year from now. Analysts expect this dividend to grow at 7% per year thereafter until the fifth year. After then, growth will level off at 3% per year. According to the dividend-discount model, what is the value of a share of Lemma stock if the firm's equity cost of capital is 8%?

Reference no: EM13935438

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