Define the firm plans to begin paying dividends

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McGonigal's Meats, Inc. currently pays no dividends. The firm plans to begin paying dividends in 3 years (at the end of t3). The first dividend at that time will be $1 and dividends are expected to grow at 5% per annum thereafter.

Given shareholders demand a 12% return on their investments, what is the price of the stock today (t0)?

Reference no: EM13217626

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