The peterman company does not currently pay dividends


Question: The Peterman Company does not currently pay dividends. However, investors expect that, in 6 years, Peterman will pay its first dividend of $1.47 per share and will continue to grow at 10% per year forever. If investors require a 12% annual return on the stock, what is the current price? The current price of the stock is $. (Round to the nearest cent.)

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Finance Basics: The peterman company does not currently pay dividends
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