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What is the current stock value

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Reference no: EM132403192

Echo Company is a young start-up company. No dividends will be paid on the stock over the next 5 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $10 per share in year 6 and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 15 percent, what is the current stock value?

Reference no: EM132403192

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