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4b) The Rich Pharma Corporation has just invented a cheap form of energy. Investors with a 16% required rate of return expect this company to
4b) The Rich Pharma Corporation has just invented a cheap form of energy. Investors with a 16% required rate of return expect this company to grow at an accelerated rate of 45% per year for the next 3 years and then continue at a constant growth rate of 15% per year. What would investors be willing to pay for the common stock if the most recent annual dividend was $4.00 per share?
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