Question: There is a small company that currently does not pay dividends. However, 3 years from now the company is expected to pay an annual

There is a small company that currently does not pay dividends. However,

There is a small company that currently does not pay dividends. However, 3 years from now the company is expected to pay an annual dividend of $3.00 (Hint: D3 $3.00). The dividend will then grow by 4% annually forever. Suppose the market requires an annual return of 8% on the company's stocks, the stock price should be today.

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