Due to ongoing capital investments lounge lizards inc

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Due to ongoing capital investments, Lounge Lizards, Inc. doesn't currently pay any dividends. However, four years from now, the firm will pay a $2.50 dividend, and its dividend payment will then increase each year by 5% until perpetuity. If you use a discount rate of 10%, calculate the maximum you would want to pay for the firm's stock today.

Reference no: EM13623729

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