Question: Problem 6-17 Multiple Growth Rates (LO2, CFA6) Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of

Problem 6-17 Multiple Growth Rates (LO2, CFA6) Carter Communications does not

Problem 6-17 Multiple Growth Rates (LO2, CFA6) Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $2.80 per share in 10 years, and you expect dividends to grow perpetually at 3.8 percent per year thereafter. If the discount rate is 16 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price

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