Dividend initiation and stock value a firm does not pay a, Financial Management

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Dividend initiation and stock value a firm does not pay a

Dividend Initiation and Stock Value A firm does not pay a dividend. It is expected to pay its first dividend of $1.05 per share in 2 years. This dividend will grow at 13 percent indefinitely. Using a 15 percent discount rate, compute the current value of this stock.

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