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The Onboard Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16.5 percent a year for the next 3 years and then decreasing the growth rate to 3.3 percent per year. The company just paid its annual dividend in the amount of $2.56 per share. What is the current value of one share of this stock if the required rate of return is 10.5 percent?

Financial Management, Finance

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