Lemma systems will pay an annual dividend of 050 one year, Ask an Expert

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Lemma Systems will pay an annual dividend of $0.50 one year from now. Analysts expect this dividend to grow at 7% per year thereafter until the fifth year. After then, growth will level off at 3% per year. According to the dividend-discount model, what is the value of a share of Lemma stock if the firm's equity cost of capital is 8%?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91606322

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