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What you would pay for a share of company x

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Question - The stock of company X pays dividends annually, with next year's dividend expected to be $1 a share. For the following seven years, dividends are expected to grow at a rate of 6% a year. Thereafter, dividends are expected to remain constant. Assume the discount rate for the dividends is 7%. What you would pay for a share of Company X? [Reminder: If you own a share of a company, you receive dividend payments].

Reference no: EM132998678

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