A company is expected to pay their first annual dividend 2


A company is expected to pay their first annual dividend 2 years from now. That payment will be $1.50 a share. Starting in Year 3, the company will increase the dividend by 5% per year. The required return from common shareholders is 15%. What is the estimated value of this stock today?

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Financial Management: A company is expected to pay their first annual dividend 2
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