How much is that stock worth today

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Reference no: EM131448835

Assume that you are using the dividend discount model (the Gordon model) to value stock. The stock currently pays no dividends, but expectedto begin paying dividends $3.00 per share in four years. Suppose the stock is expected to grow at a rate of 15% for the next five years that it started paying dividends, then slows to a long-term growth rate of 5%, how much is that stock worth today?

Reference no: EM131448835

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