What is the market value of this stock

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Reference no: EM131914932

Nu-Tek, Inc. is expecting a period of intense growth, so it has decided to retain more of its earnings to help finance that growth.

As a result it is going to reduce its annual dividend by 10% a year for the next three years. After that it will maintain a constant dividend of $.70 a share.

Last year, the company paid $1.80 per share. What is the market value of this stock if the required rate of return is 13%?

Reference no: EM131914932

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