What should be the market value of its stock today

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Reference no: EM131999823

Xtinct Artifacts has not paid a dividend in the past 10 years. However, at the end of this year, the company plans to pay a $1.50 dividend and a $2 dividend the following year (year 2). Starting in three years, the dividend will begin to grow by 5 percent each year for as long as the firm is in business. If investors require an 11 percent rate of return to purchase Xtinct's common stock, what should be the market value of its stock today?

Reference no: EM131999823

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