After 5years caldwells dividend is expected to grow at a


Caldwell is experiencing cash flow issues. Analysts believe the company will pay a dividend every other year for the next 5 years. The first dividend payment of $2/share will occur one year from today. Each subsequent dividend paid over this time 5 year period will be 120% of the previous dividend paid. After 5years, Caldwell's dividend is expected to grow at a constant 4% rate, indefinitely. Investors require a 10% rate of return. Find the value of Cadwell's stock today?

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Finance Basics: After 5years caldwells dividend is expected to grow at a
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