Expected to pay its first annual dividend five year from now

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Bacchus Vineyards, Inc. is expected to pay its first annual dividend five years from now. That payment will be $3.20 a share. Starting in year six, the company will increase the dividend by 3.8 percent per year. The required return is 11.4 percent. What is the value of this stock today?

Reference no: EM131579169

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