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An investor plans to hold Newcos stock for 3 years. In that time period, Newco plans to grow at a rate of 6% in the

  1. An investor plans to hold Newcos stock for 3 years. In that time period, Newco plans to grow at a rate of 6% in the first two years and 3% thereafter. Newcos last dividend was $0.25. Given a rate of return of 10%, what is the value of Newcos common stock at the end of the 3-year time period?

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