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Business, 19.06.2020 19:57 lizsd2004

Storico Co. just paid a dividend of $1.90 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 15 percent, what will a share of stock sell for today?

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Storico Co. just paid a dividend of $1.90 per share. The company will increase its dividend by 20 pe...
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