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An entity has a stock that last paid dividend at $10 per share. The CEO expects that dividends are to grow at 12%, 15%, 20%
An entity has a stock that last paid dividend at $10 per share. The CEO expects that dividends are to grow at 12%, 15%, 20% and 22% in years 1-4 respectively after which management anticipates that the dividends are to grow at 10% into the foreseeable future. The entity shareholders require a return of 16% of every investment. Determine the terminal value and value of the stock today
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