What is the present value of the stock price at time 4

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Reference no: EM132055736

Question

WD stock will pay no dividends for four years. In year five it will pay a $3 dividend (DIV_5 = 3). The dividend will then grow at a 5% rate forever after that.

The discount rate on WD stock is 10%. What is the present value of the stock price at time 4?

Reference no: EM132055736

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