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Company A. is a fast growing firm and no dividend will be paid on the stock over the next 9 years. The company then will pay a $12 dividend per share in year 10 and will increase the dividend by 5 percent forever.

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Question: If the required rate of return for this stock is 13 %, what should be the intrinsic value of Company A.?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170011

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