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A common stock just paid a dividend of $5 per share. The dividend is expected to grow each year at 5% over the next 20
A common stock just paid a dividend of $5 per share. The dividend is expected to grow each year at 5% over the next 20 years, at 4% beyond year 20 until year 40, and at 2% in perpetuity beyond year 40. What would be the stock intrinsic value today if the discount rate were 12%?
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