Business, 28.12.2020 21:30 karen718

Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over the next 7 years. The company will start paying a $6 per share dividend at the end of year 8 and thereafter it will increase the dividends by 2% per year forever. If the required rate of return on this stock is 10%, what is the current (today’s) share price?

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Joven Corp. is a young start-up company and therefore is not paying any dividends on the stock over...

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