Question: A stock does not currently pay dividends. The first dividend of $ 3 . 4 will be paid in year 4 . The second dividend

A stock does not currently pay dividends. The first dividend of $3.4 will be paid in year 4. The second dividend of $4.2 will be paid in year 7. According to your analysis, you think you should be able to sell the stock for $122 at that time. If the required return is 12.6%, what is the stock's value today?

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