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A company just paid a dividend of $5.00. You expect the dividend to grow by 2% this year, 4% next year and 6% the following
A company just paid a dividend of $5.00. You expect the dividend to grow by 2% this year, 4% next year and 6% the following year. You have determined the required rate of return on this stock should be 15%. The stock's current market price is $61. What would the terminal growth rate in years four and beyond need to be to justify this price?
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