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Calculating the intrinsic value per share

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Reference no: EM133114171

A stock currently does not pay any dividends. The stock is expected to begin paying a dividend of $1.20 per share in three years. After they begin, the dividends are expected to grow forever at a constant rate of 5.2% per year. If investors require a return of 12.4% per year to hold the stock, what is its intrinsic value per share?

Reference no: EM133114171

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