Having a lot of trouble with a practice exam

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Having a lot of trouble with a practice exam for my Finance class. Please help! What would be the current price of a stock that will pay no dividend in the next 3 years, but begin paying a $1 dividend in year 4? After year 4, the dividend is expected to grow at 12%. The required return for the stock is 17%. What is the value of the stock price in 3 years? (hint: draw a cash flow timeline and find P3 first)

Reference no: EM13684245

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