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Fickell Industries is growing rapidly and currently retains all of its earnings (i.e., no dividends). If...

Fickell Industries is growing rapidly and currently retains all of its earnings (i.e., no dividends). If is expected that Fickell will begin paying a $1.00 dividend 3 years from today. The dividend will grow by 50% in years 4 and 5. Thereafter (year 6 and beyond), dividend growth is expected to be a constant 8% per year. If the required return for Fickell Industries stock is 15%, what is the market price of Fickell stock?

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jeff jeffy answered 1 year ago
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