Stock today based on the discounted dividend model

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Wyoming Mining Group stock does not now pay dividends. Investors expect that it will begin paying a dividend of $0.50/share in exactly 5 years at time 5. That is, they forecast that D5 will be $0.50/share. Investors expect that the dividend will then remain at that level of $0.50/share forever after that. They require a return of 11.00% on this stock. What is the value of this stock today based on the discounted dividend model?

Reference no: EM131567805

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