Central Inc.has an 11.5% required rate of return.It does not expect to initiate dividends for 20 years,at which time it will pay $3.75 per share in dividends.At that time,Central expects its dividends to grow at 6% forever.What is an estimate of Central's price in 20 years (P20)if its dividend at the end of year 20 is $3.75? What is its price in today's dollars if you desire a rate of return of 12%?

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The Answer of Central Inc.has an 11.5% required rate of return.It does not expect to initiate dividends for 20 years,at which time it will pay $3.75 per share in dividends.At that time,Central expects its dividends to grow at 6% forever.What is an estimate of Central's price in 20 years (P20)if its dividend at the end of year 20 is $3.75? What is its price in today's dollars if you desire a rate of return of 12%?