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An investor considers a stock that expects to have high growth over the next 5 years and then a constant growth rate thereafter. As a
An investor considers a stock that expects to have high growth over the next 5 years and then a constant growth rate thereafter. As a result, the stock follows the pattern of a two-stage valuation model. If the investor instead uses a constant growth model using the constant growth rate that the company expects after year 5, he/she:
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