Question: You have just been given 1 0 , 0 0 0 shares of Acme Common Stock. Acme does not currently pay any dividends. Yesterday, the
You have just been given shares of Acme Common Stock. Acme does not currently pay any dividends. Yesterday, the CEO announced that in five years eg at time t Acme will begin paying an annual dividend of $ per share. Analysts and investors expect that this $ per share dividend will be paid each year starting at time t in perpetuity. If the appropriate cost of capital is compounded annually, what is the value of one share of Acme Common Stock today? a $ b $ c $ d $ e $ f $ g $
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