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A share of stock just recently released a dividend for $3.10 per share, and has expected growth rate of 4.40% in the next year, 1.50%
A share of stock just recently released a dividend for $3.10 per share, and has expected growth rate of 4.40% in the next year, 1.50% in the second year, 4.60% in the third year and 5.00% in the fourth year. Finally the firm expects the growth to become 3.80% long-term thereafter. Given that the expected discount rate on these bonds is 14.40%, what is the expected price of this stock?
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