Question: AAA company does not expect to pay any dividends for the next two years. Three years from now they hope to pay $1 a share

AAA company does not expect to pay any dividends for the next two years. Three years from now they hope to pay $1 a share and increase that amount by 100 percent for the following year. After that, the dividend is expected to increase in value by 4% annually. What is the value of this stock today if the required return is 8 percent?

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