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3 . The company will pay a dividend of $ 1 . 2 dollars next year which will grow at the rate 2 0 %

3. The company will pay a dividend of $1.2 dollars next year which will grow at the rate 20% in a year after that, and then at 4% indefinitely. If the required return is 8.5%. what is the intrinsic value of the stock?

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