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Carter Communications does not currently pay a dividend. You expect the company to begin paying a...

Carter Communications does not currently pay a dividend. You expect the company to begin paying a dividend of $4.40 per share in 12 years, and you expect dividends to grow perpetually at 5.9 percent per year thereafter. If the discount rate is 16 percent, how much is the stock currently worth? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Expert Solution

The stock is currently worth $ 8.51

Calculation is given in the below attached image

Please give upvote and thank you for that in advance

jeff jeffy answered 2 years ago
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