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3. You want to value Maxima Machinery stock. You expect the firm to have a growth rate of 12% for the next two years, 9%
3. You want to value Maxima Machinery stock. You expect the firm to have a growth rate of 12% for the next two years, 9% for the succeeding two years, after which the firms growth will be a constant 4.5% a year. Maxima has just paid a dividend of $2. If the discount rate is 10%, what is the price of the stock?
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