Question: Problem 8-23 Dividend Initiation and Stock Value (LG8-6) A firm does not pay a dividend. It is expected to pay its first dividend of $0.10

Problem 8-23 Dividend Initiation and Stock Value (LG8-6)

A firm does not pay a dividend. It is expected to pay its first dividend of $0.10 per share in three years. This dividend will grow at 8 percent indefinitely. Use a 9 percent discount rate.

Compute the value of this stock $_____

Round your answers to 2 decimal places

* please show steps how to solve*

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