Evaluate current value of one share of the stock

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Reference no: EM132022936

Question: The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19.1 percent a year for the next 3 years and then decreasing the growth rate to 3.8 percent per year. The company just paid its annual dividend in the amount of $2.58 per share. What is the current value of one share of this stock if the required rate of return is 8.9 percent?

Reference no: EM132022936

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