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problem: The chairman of Tiller Industries told a meeting of financial analysts that he expects the firm’s earnings and dividends to double over the next 6 years. The firm’s current [that is, as of year 0] earnings & dividends per share are $4 & $2, respectively.

[A] find out the compound annual dividend growth rate over the 6 year period.

[B] Suppose the forecasted growth rate in [A] will go on forever, how much is this stock worth today if investors require an 18 percent rate of return?

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