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1. A firm just paid a $20 per share dividend, and the stock currently sells for $300 per share. Dividends are expected to grow at
1. A firm just paid a $20 per share dividend, and the stock currently sells for $300 per share. Dividends are expected to grow at a 20% annual rate for each of the next four years. What price must you be able to sell the stock for at the end of the 4 years in order for the stock to be fairly valued based on a 12% cost of equity?
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