How to calculate stock price if dividend is 0?

aammmy33

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Dec 1, 2009
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a company pays $0.00 in one year and $0.80 in year two (dividend). after that, dividend will grow at a 6% rate forever. The r.o.r. is 9%. how would you find the stock price for today ( p0 )? i know how to calculate the stock prince in 1 year
 
Please demonstrate what you know. Then, tell us why you believe this problem presents a more difficult situation.
 
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