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Big Petroleum Company has just paid a $1 dividend. Due to a recent discovery of a rich oil well on a patch of land leased
Big Petroleum Company has just paid a $1 dividend. Due to a recent discovery of a rich oil well on a patch of land leased by the company in central Africa, it is estimated that the company will grow by 40% per year for the next 3 years and 20% for 2 year after that. Afterwards, the companys growth will slow to 7% per year, and this growth rate is expected to continue into the foreseeable future. The required rate of return on similar stocks in the financial market is 15%. What is the price of a share of Big Petroleum Company
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