Share of common stock-what is the price at time

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Reference no: EM131056840

A company pays a current dividend of $1.20 per share of common stock. The annual dividend will increase by 3%, 4% and 5%, respectively, over the next three years, and by 6% per year thereafter. The appropriate discount rate is 12%. What is the price at time 0? Please show all work, including formula used.

Reference no: EM131056840

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