Value of future cash flows

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Value of Future Cash Flows

A firm recently paid a $0.90 annual dividend. The dividend is expected to increase by 12 percent in each of the next four years. In the fourth year, the stock price is expected to be $63.

If the required return for this stock is 14.50 percent, what is its current value? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Current value $

Reference no: EM131600336

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