What is the fair market price for a share

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Blockbuster Inc. just paid a dividend of $2 per share. Dividends are expected to grow at a rate of -50% annually over the next three years. After that, it is expected that Blockbuster will cease paying dividends forever. What is the fair market price for a share of Blockbuster if shareholders require a return of 12%?

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Reference no: EM133119969

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