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A DIFFERENTIAL GROWTH EXAMPLE A common stock just paid a dividend of $2. The dividend is expected to grow at 8% for 3 years, then
A DIFFERENTIAL GROWTH EXAMPLE A common stock just paid a dividend of $2. The dividend is expected to grow at 8% for 3 years, then it will grow at 4% in perpetuity. What is the stock worth? The discount rate is 5%
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