Estimate what would you are willing to pay for a share

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Reference no: EM131993701

If Starbuck, Inc. just paid a dividend of $12.15 and you expect that dividends will grow by 3 percent, then 1.4 percent in the year after that, then grow at 2.1% for five years, and then stay flat at $25 for six years, and after that dividends grow at a 2 percent indefinitely, what would you be willing to pay for a share of stock if the required return is 5 percent?

Reference no: EM131993701

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