What the stock should sell for today

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Reference no: EM132602018

Extreme Heat, Inc. plans to retain and reinvest all of its earnings for the next 20 years. Beginning in year 21, the firm will begin to pay a $10 per share dividend. The dividend will increase at a 5.9% rate annually thereafter. Given a required return of 13.6%, what the stock should sell for today?

Reference no: EM132602018

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