Newcomer mills is a relatively new firm which will retain


Question: Newcomer Mills is a relatively new firm which will retain all of its earnings for the next four years. Four years from now, the firm expects to pay its first dividend of $0.25 a share. After that, it intends to increase the dividend by 4 percent annually. What is the value of this stock today at a discount rate of 12 percent?

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Finance Basics: Newcomer mills is a relatively new firm which will retain
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