Calculate approximate current market price of common stock

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Reference no: EM1367053

Big Tom's stock is not expected to pay cash dividends for three years. In years 4, 5, and 6 the cash dividend will be $6 a year, and year seven to infinity the cash dividend will be $8 a year.

If the required rate of return is 12%, what is the approximate current market price of Big Tom's common stock?

Reference no: EM1367053

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