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    Big Tom's stock valuation problem: What is the approximate current market price?

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    Big Tom's stock is not expected to pay cash dividends for 3 years. In years 4, 5, and 6 the cash dividend will be $6 per year, and year 7 to infinity the cash dividend will be $8 per year.

    If the required rate of return is 12%, what is the approximate current market price of Big Tom's common stock?

    © BrainMass Inc. brainmass.com February 24, 2021, 2:10 pm ad1c9bdddf
    https://brainmass.com/business/finance/big-toms-stock-valuation-approximate-current-market-price-5619

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