Based on discounted valuation of future dividends

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Reference no: EM131070931

Apple will start paying its first dividend 4 years from now in the amount of $26 per share. Over the following 10 years, MIke projected that the dividends would grow by 16% per year, after which the growth rate would be a constant rate of 4%, forever. If the appropriate discount rate for the stock is 10%, what should the stock sell for today based on a discounted valuation of the future dividends that Mike has projected?

Reference no: EM131070931

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