What is the current value of one share of this stock

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The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 19 percent a year for the next 4 years and then decreasing the growth rate to 3 percent per year. The company just paid its annual dividend in the amount of $3.30 per share.

What is the current value of one share of this stock if the required rate of return is 8.80 percent? Show detailed calculations.

Reference no: EM13768148

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