A firm has just paid a dividend of $1.66 per share.  The dividend is expected to grow at an initial growth rate of 10.2% per year, but the growth rate will then decline linearly over 14 years to a constant long-term growth rate of 3.7% per year.  The cost of equity is 7.1%.  What is the value of each share?

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Lets go through the calculations step by step to determine the value of each share Given Dividend 16... View the full answer