Productions pays no dividend at the present time

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Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $2 a share next year, $4 a share the following year and then the company plans on increasing the dividend 10% annually. How much are you willing to pay to buy a share of this stock today if your required return is 17 percent?

Reference no: EM13882178

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