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A share of stock has a dividend of D0 =$5. The dividend is expected to grow at a 20 percent annual rate for the next
A share of stock has a dividend of D0 =$5. The dividend is expected to grow at a 20 percent annual rate for the next 3 years, and then at a long- run normal growth rate of 5 percent forever. If investors require a 10 percent return on this stock, what is its current price?
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