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A company that just paid a dividend of $2.75 per share plans to increase its dividend by 14% per year for the next 2 years.
A company that just paid a dividend of $2.75 per share plans to increase its dividend by 14% per year for the next 2 years. The company is then expected to maintain a constant dividend growth rate of 5% forever. Assume the required return on the stock is 12%. What is the price per share for this stock expected to be 2 years from now?
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