What is one share of the stock worth

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Problem 1: XYZ Firm recently paid $3.00 as an annual dividend. Future dividends are projected at $3.50, $4.00, $4.50, and $5.00 over the next 4 years, respectively. Beginning 5 years from now, the dividend is expected to increase by 4.0 percent annually. What is one share of this stock worth to you if you require a 12.0 percent rate of return on similar investments? Please show your calculations.

Reference no: EM132939348

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