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The Wayne Corporation expects to have a changing dividend policy over the next few yearsstarting...

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Finance

The Wayne Corporation expects to have a changing dividend policy over the next few years
starting with the dividend that they just paid of $8.42. In the following year their dividend will
grow by 19.7% and in the year after by 14.7%. Following that they expect their dividends to
continue growing at a constant rate of 4.3% forever. If the required rate of return for Wayne
is 16.2% per year, what is the price today of Wayne shares? Answer to the nearest penny.

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