Question: Springboro Tech is a young start - up company. No dividends will be paid on the stock over the next 2 0 years, because the

Springboro Tech is a young start-up company. No dividends will be paid on the stock over the next 20 years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $16.51 per share dividend in 21 years and will increase the dividend by 3.38% per year thereafter. What is the current share price if the required return on this stock is 7.42%?

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