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2. (5 points) The growth in dividends of Danvers, Inc. is expected to be 15% per year for the next four years; after that, the

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2. (5 points) The growth in dividends of Danvers, Inc. is expected to be 15% per year for the next four years; after that, the growth in dividends is expected to be 4% per year, indefinitely. The required rate of return on Danvers, Inc. is 12%. Last year's dividends per share were $1.57. What is the stock's intrinsic value? 2

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