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5. A company is expected to pay $1.00 in dividends next year. Dividends are expected to grow by 100% annually in years 2 and 3.

5. A company is expected to pay $1.00 in dividends next year. Dividends are expected to grow by 100% annually in years 2 and 3. Thereafter, dividends will grow by 5% annually. Please calculate the stock price if the required retum is 12%. Timel Cash Flow Discounted Cash Flow 7 18 19 20 21 22 21 3

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