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Question: the company has invested a small amount in the equity...

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The company has invested a small amount in the equity of a rising star in the industry. This company has just paid him a cash dividend $10,000. He expects that the dividends from this investment will increase by 15 percent for the next three years and then will start growing by 5 percent forever. For the same amount of risk, he could instead invest in other opportunities which would return 12 percent per annum.  What is this investment currently worth for him?

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