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A stock just paid an annual dividend of $4.1. The dividend is expected to grow by 11% per year for the next 5 years. It
A stock just paid an annual dividend of $4.1. The dividend is expected to grow by 11% per year for the next 5 years. It will then grow by 2% per year forever. The required rate of return is 11%. Part 1 What is the dividend in year 5? Part 2 What is the terminal value ( P 5 )? Part 3 What is the value of the stock?
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