Spring 23 Corporation is a start-up business that will not be able to pay dividends...
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Spring 23 Corporation is a start-up business that will not be able to pay dividends for the next four years. However, in five years its anticipated that the company will be able to pay a dividend of $0.75 per share, with that dividend growing to $1.50 the next year. After that $1.50 dividend it is believed that dividends will grow at an annual rate of 5% indefinitely. The Market needs a 14% return to justify the risks of this equity investment. Estimate the stock price as of today. [Do not round interim calculations]
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