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  3. [11] a stock will not pay dividends until two year

[11] A stock will not pay dividends until two years from now, when the initial...

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Finance

[11] A stock will not pay dividends until two years from now, when the initial dividend will be $1.10 per share. The required rate of return for this firm is 10%, the firms dividend payout ratio is expected to be 60% and its ROE 15%. What should be the value of its stock today?

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