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    Constant growth

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    67. The Robert Phillips Co. currently pays no dividend. The company is anticipating dividends of $0, $0, $0, $.10, $.20, and $.30 over the next 6 years, respectively. After that, the company anticipates increasing the dividend by 4% annually. The first step in computing the value of this stock today, is to compute the value of the stock when it reaches constant growth in year:
    A. 3
    B. 4
    C. 5
    D. 6
    E. 7.

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    https://brainmass.com/economics/barriers-to-growth/constant-growth-assessing-value-stock-379689

    Solution Preview

    The Robert Phillips Co. currently pays no dividend. The company is anticipating dividends of $0, $0, $0, $.10, ...

    Solution Summary

    Constant growth and value of stock is assessed in the solution.

    $2.19