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Assume that Elenas Co. current dividend Do is $1.00; it is expected to grow to 15% the first year, 20% the second year, 10% the
Assume that Elenas Co. current dividend Do is $1.00; it is expected to grow to 15% the first year, 20% the second year, 10% the third year, and return to its long-run constant growth rate of 4%. cost of equity, or required rate of return is 7%.
1. what is the stocks horizon terminal value?
2. what is the stocks intrinsic stock price today?
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