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5. (3 points) A fast growing firm recently paid a dividend of $0.55 per share. The dividend is expected to increase at a 22 percent
5. (3 points) A fast growing firm recently paid a dividend of $0.55 per share. The dividend is expected to increase at a 22 percent rate for the next three years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 13 percent discount rate is appropriate for this stock, what is its value?
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