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What is the fair-value of a share

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Reference no: EM132731566

Omni Consumer Products just paid a dividend of 1.53 and anticipates a short term growth rate of 16% for year 1 and for year 2 (dividends 1 and 2).

Assuming that after year 2, Omni's contract with the City of Detroit will give it a constant growth rate of 3%, what is the fair-value of a share if the required return is 13%?

Answer to two decimal places and no $ sign

Reference no: EM132731566

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