What is the most you are willing to pay for a share of Tim Co....
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What is the most you are willing to pay for a share of Tim Co. today which is expected to pay out the following dividends in the future? Tim Co. is expected to pay a $4.00 dividend next year and the dividend is expected to increase by 10% the following year, 20% the year after and then finally settle at a constant growth of 5%. Your required rate of return on this investment is 10%. Show your work.
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