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5. Calculate today's stock price for Lilly Inc. (LI) if last period's dividend was $2.58 and its dividend growth for the next two years is
5. Calculate today's stock price for Lilly Inc. (LI) if last period's dividend was $2.58 and its dividend growth for the next two years is projected to be 22% in year 1 and 18% in year 2, and, after year 2, dividend growth will return to its constant growth rate of 4%. Assume the required return for shareholders is 9%. (10 pts.)
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