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1. A stock just paid a dividend of $1.96. The dividend is expected to grow at 28.71% for three years and then grow at 4.58%
1. A stock just paid a dividend of $1.96. The dividend is expected to grow at 28.71% for three years and then grow at 4.58% thereafter. The required return on the stock is 12.59%. What is the value of the stock?
2. A stock just paid a dividend of $1.30. The dividend is expected to grow at 26.79% for five years and then grow at 4.71% thereafter. The required return on the stock is 11.03%. What is the value of the stock?
Please, do not just answer to answer. Make sure the answer is right. Also, explain it please. Thank you
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