Big toms stock is not expected to pay cash dividends for, Ask an Expert

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Big Tom's stock is not expected to pay cash dividends for three years. In years 4, 5, and 6 the cash dividend will be $6 a year, and year seven to infinity the cash dividend will be $8 a year.

If the required rate of return is 12%, what is the approximate current market price of Big Tom's common stock?

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Category:- Basic Finance
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