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What is the fair value of the ordinary share

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FastBiz Inc. is currently not paying a dividend. You predict that, in six years, FastBiz will pay a dividend for the first time. The dividend will be $0.40 per share. You expect that this dividend will grow at a rate of 8% per year indefinitely. The required return on companies such as FastBiz inc. is 17% p.a. What is the fair value of the ordinary share today?

Reference no: EM133003947

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