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A Corporation plans to pay $8.00 dividend per share to its common stockholders for the future 3 years, and after year 3 it is expected
A Corporation plans to pay $8.00 dividend per share to its common stockholders for the future 3 years, and after year 3 it is expected that the dividend will constant grow by 5%. If you require a rate of return of 15%, what is the expected current price for this stock?
The Answer is $73.50, but how is this determined?
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