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AFX is an abnormal growth firm. An analyst forecasts that the company will pay $3 dividend per share next year, and the dividend will grow
AFX is an abnormal growth firm. An analyst forecasts that the company will pay $3 dividend per share next year, and the dividend will grow at 17% for the next three years (from year 1 to year 3). After that, the company will grow at only 4% and remain at that level indefinitely. If the appropriate required return is 16%, what is the current stock price?
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