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    xodiana's Avatar
    xodiana Posts: 10, Reputation: 1
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    #1

    Jul 2, 2008, 08:47 PM
    Stock Price
    Miller Juice is a young company that currently does not pay a dividend. The company retains all their earnings to finance their growth. However, ten years from now the company is expected to start paying a $1.50 dividend. According to research reports the dividend should then grow by 5% annually forever.
    If the required return on the stock investment is 13%, what should be Miller's stock price today?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 2, 2008, 08:56 PM
    Please see our guidelines for submitting homework problems. This is in red print right at the top of this page.

    https://www.askmehelpdesk.com/financ...-b-u-font.html
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