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What is the current share price

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Reference no: EM131478436

Holden Inc. just paid a dividend of $11. For the next 4 years, it will increase its dividends by 20% each year. In year 5, it will pay a final dividend of $25, and then will never pay another dividend.

a) If your required rate of return is 10%, what is the current share price?

b) What is the share price in YEAR 7 (P(7))?

c) Why is this the share price in year 7?

Reference no: EM131478436

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