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A rapidly growing company just paid a dividend of $1.00 per share. The dividend is expected to increase at a 25% rate for the next
A rapidly growing company just paid a dividend of $1.00 per share. The dividend is expected to increase at a 25% rate for the next three years. After that, a steady 8% growth rate will occur. If a 10% opportunity cost of capital is appropriate for this stock, what is its value?
$75.94 | ||
$12.51 | ||
$120.25 | ||
$83.13 |
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