Percent annual rate for the next two years

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TatNeft. will pay a dividend of $1.17 per share at the end of next year (end of year 1) and this dividend is expected to grow at a -5% percent annual rate for the next two years (i.e. until the end of year 3). From the end of year three it is expected to grow at a 0.5 percent rate forever.

What value would you place on this stock if the WACC is 5% and the cost of equity is 7%?

Reference no: EM131758138

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