AVZ is a start-up company who is using all its cash to growth so it does...

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Answer 1

Answer #1

Stock price=$36.22

Explanation:
Year	Dividend	Price	Discount rate @11%
6	$ 6.00		0.534641	$ 3.21
7	$ 6.00		0.481658	$ 2.89
8	$ 6.00		0.433926	$ 2.60
9	$ 6.00		0.390925	$ 2.35
10	$ 6.00		0.352184	$ 2.11
11	$ 6.00		0.317283	$ 1.90
12	$ 6.00		0.285841	$ 1.72
12		$ 68.00	0.285841	$ 19.44
Stock price				$ 36.22

Stock price at end of 12 years=6*1.02/(.11-.02)=$68

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Answer 2

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