A firm does not pay a dividend it is expected to pay its


A firm does not pay a dividend. It is expected to pay its first dividend of $0.42 per share in three years. This dividend will grow at 11 percent indefinitely. Use a 12 percent discount rate.

Compute the value of this stock. (Round your answer to 2 decimal places.)

Stock value $

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Financial Management: A firm does not pay a dividend it is expected to pay its
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