Find the value places on the share of stock

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Problem 1: A share of stock is expected to pay a $2.00 dividend in year one, a $2.50 dividend in year two, no dividend in year three, and a and a $3.50 dividend in year 4. Dividends will grow thereafter at a rate of 5% annually. If the investor's required rate of return is 20%, find the value she places on this share of stock. If the investor's required rate of return is 20%, find the value she places on this share of stock.

Reference no: EM132721703

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