Question: A stock is currently not paying dividends. Five years from now in quarter 20, it is expected to start paying a quarterly dividend of $0.10

A stock is currently not paying dividends. Five years from now in quarter 20, it is expected to start paying a quarterly dividend of $0.10 per share, with annual growth of 5% per year thereafter. If investors require a 10% annual return.


What should the stock's price be?

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