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Crosby Inc

question 12

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Crosby Inc.has an 11% required rate of return.It does not expect to initiate dividends for 20 years,at which time it will pay $4.00 per share in dividends.At that time,Crosby expects its dividends to grow at 6% forever.What is an estimate of Crosby's price in 20 years (P20) if its dividend at the end of year 20 is $4.00?


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