Question: PLEASE SHOW WORK A start-up company will not pay any dividend in the next two years. It will pay its first dividend of $0.30 at

PLEASE SHOW WORK A start-up company will not pay any dividend

PLEASE SHOW WORK

A start-up company will not pay any dividend in the next two years. It will pay its first dividend of $0.30 at the end of the third year. This dividend of $0.30 will grow at a rate of 10% for 5 years until the end of year 8. After that, the growth will slow down to 5% forever. The required rate of return is 15%. What is the price of the stock today? O $3.42 $2.64 $2.55 o oo $2.72 O $3.14

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