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A. Company XYZ has just paid a dividend of $3. As XYZ is a young company and successful, it is estimated that they will grow

A. Company XYZ has just paid a dividend of $3. As XYZ is a young company and successful, it is estimated that they will grow at rate of 20% for 5 years and then at 3% in perpetuity. The company faces a required return on equity of 7%. What is the current price of the companys stock using the DDM model? Use excel for all calculations (5 Marks)

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