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7. A companys dividend growth rate is expected to be 20% in the coming year, drop to 10% from Year 1 to Year 2, and

7. A companys dividend growth rate is expected to be 20% in the coming year, drop to 10% from Year 1 to Year 2, and drop to a constant 5% for all subsequent years. The company just paid a dividend of $1 and its stock has a required return of 15%. What is the companys estimated stock price today using the dividend discount model?

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