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3. A stock just paid a cash dividend of $2.20 per share. It is expected to grow at 15% per year for the next 5

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3. A stock just paid a cash dividend of $2.20 per share. It is expected to grow at 15% per year for the next 5 years. After that, the growth will stabilize at 4% per year forever. The required return is 12%. (a) Calculate the price of the stock in 5 years. (6pts) (b) Calculate the price of the stock today. ( 6pts)

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