What the value of share of canyon buff today is closest to

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Problem 1: Canyon buff Corp. currently pays no dividend. You anticipate Canyon Buff will pay an annual dividend of $0.56 per share two years from today, and you expect dividends to grow by 4% per year thereafter. If Canyon buff's equity cost of capital is 12%, then the value of share of Canyon Buff today is closest to:

a. $4.67
b. $5.00
c. $6.25
d. $7.00

Reference no: EM132815363

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