Question: Rounded to 2 decimals, Please show work so I can understand the process of solving this type of problem. A stock will pay no dividends
A stock will pay no dividends for the next 9 years. Ten years from now, the stock is expected to pay its first dividend in the amount of $2.8. It is expected to pay a dividend of $3.5 exactly eleven years from now. The dividend is expected to grow at a rate of 4% per year forever after that point. The required return on the stock is 10%. The stock's estimated price per share exactly twelve years from now, P12. should be $
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