What should the market price of stock today

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A company currently does not pay a dividend. However, the company is expected to pay a $1.00 dividend/share two years from today. The dividend is then expected to grow at an average of 20 percent a year for a year for the following three years. After that, it is expected to grow forever at an average constant rate of 7%. What should the market price of this stock today if investors' required rate of return is 13%.

Reference no: EM131865763

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