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1. Assume that a company paid dividend of Taka 2 on the share last year and is expected to grow at a rate of 15%
1. Assume that a company paid dividend of Taka 2 on the share last year and is expected to grow at a rate of 15% for the coming three years. After that it would grow at a rate of 5% for ever. If the required rate of return is 12%, what is the value of the stock today? If the current market price is Taka 75, what should be your decision (buy or sell) with the stock?
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