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The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The company will then increase its dividend by 10 percent per year for two years after which it will maintain a constant
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The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The company will then increase its dividend by 10 percent per year for two years after which it will maintain a constant 2 percent dividend growth rate. What is one share worth today at a required rate of return of 14 percent?

User Adriene
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6 votes

Answer:

Current Share Price = $15.14

Step-by-step explanation:

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The Merriweather Co. just announced that it will pay a dividend next year of $1.60. The-example-1
User Jibin Mathews
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