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What is the value of one share today

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A company is not expected to make any dividend payments over the next five years. The company is expected to pay $1.50 per share and $1.60 per share of dividends at the end of year six and year seven, respectively. Subsequently, dividends are expected to grow at a constant rate of 2% per year forever. The required rate of return is 10% per year. What is the value of one share today? Show your calculation.

Reference no: EM133113157

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