Calculate the value of single ravioli share today

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Ravioli Inc has just paid a (per share) dividend of $3.00. An analyst forecasts annual dividend growth of minus 4% for the next five years, after which dividends will decrease by 2% per year for four years. Following these two periods, the annual growth rate will be 3% forever. The required return is 10%. Calculate the value of a single Ravioli share today.

Reference no: EM131960316

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