What is the current share value for white corporation

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White Corporation has just paid an annual dividend of 2 dollars per share. It is expected that the dividend will grow at 10 percent per year in the next four years. Thereafter, the growth rate will remain constant at 5 percent indefinitely. The appropriate discount rate is 16 percent.

(a): What will be the share worth in four years (i.e., at the end of year four)?

(b): What is the current share value for White Corporation?

Reference no: EM132630989

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