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IBM has just paid a dividend of $4 per share (this dividend is already paid sometimes called Dividend 0).

It is estimated that the companys dividend will grow at a rate of 35% in year 1 and 20% in year 2.

The dividend is then expected to grow at a constant rate of 9% thereafter.

The companys opportunity cost of capital is 12% what is the current value of IBM?s stock?

Financial Management, Finance

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