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9 - 1 6 NONCONSTANT GROWTHCarnes Cosmetics Co . ' s stock price is$ 3 0 , and it recently paid a $ 1 .

9-16 NONCONSTANT GROWTHCarnes Cosmetics Co.'s stock price is$30, and it recently paid a $1.00dividend. This dividend is expected togrow by 30% for the next 3 years, then grow forever at a constant rate, g; andIs =9%. At what constant rate is thestock expected to grow after Year 3?

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