Dividend initiation and stock value

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Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.40 per share in 3 years. This dividend will grow at 14 percent indefinitely. Using a 16 percent discount rate, compute the value of this stock.

$52.02

$79.80

$51.12

$109.26

Reference no: EM131309706

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