The company is planning on increasing its annual dividend

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Combined Communications is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 21 percent a year for the next 4 years and then decreasing the growth rate to 4 percent per year. The company just paid its annual dividend in the amount of $1.30 per share. What is the current value of one share of this stock if the required rate of return is 8.25 percent?

$57.36

$47.91

$51.35

$56.58

$43.68

Reference no: EM13570999

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