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4. Chain Reaction, Inc., has been expecting dividends to grow at a rate of 20% per year because of its rapid expansion and explosive sales.

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4. Chain Reaction, Inc., has been expecting dividends to grow at a rate of 20% per year because of its rapid expansion and explosive sales. You believe that this growth rate will last for three more years and that the rate will then drop to 10% per year. If the growth rate then remains at 10% indefinitely, what is the value of the stock today? A dividend per share just paid was $5, and the required return is 15%. (25 points)

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