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BBC paid a dividend of $2 per share. It is estimated that the dividend will grow at a rate of 15% per year for the

BBC paid a dividend of $2 per share. It is estimated that the dividend will grow at a rate of 15% per year for the next 3 years, then at a constant rate of 7% thereafter. GE has a required rate of return of 10%. What is your estimate of the current price for GE stock?

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To estimate the current price of GE stock we can use the Gordon Growth Model also known as the Dividend Discount Model since the dividends are expecte... blur-text-image

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