Determine the current market value of the company stock

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Reference no: EM131535326

Investors expect Microtech to pay the first dividend of $0.55 at the end of Year 3. The dividend should grow at a rate of 4 percent per year during Years 4 and 5. The stock can be soldfor $35 at the end of Year 5.

Determine the current market value of the company’s stock if the required rate of return is 9 percent.

Reference no: EM131535326

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