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Intel Inc. does not currently pay dividends; however, investors expect that in four years, the firm will pay its first dividend of $2.50 per share. From that point onwards, the dividend is expected be $3 annually forever.

Assume that investors required rate of return is 8%. What should the price of Intel be today?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92766922

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