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Asked Nov 7, 2019

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Avril Synchronistics will pay a dividend of $1.50 per share this year. It is expected that this dividend will grow by 5% each year in the future. What will be the current value of a single share of Avril's stock if the firm's equity cost of capital is 16%?

Step 1

**Computation of current value of share:**

Current value of shar...

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