What is fair value of stock for which no dividend will paid
Problem
What is the fair value of the stock for which no dividend will be paid for next three years, but $1.00 dividend per share will be paid 4 years from now and then will grow at 7% every year? Assume that the discount rate is 10%.
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What is the fair value of the stock for which no dividend will be paid for next three years, but $1.00 dividend per share will be paid 4 years from now and then
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