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Bursa Corporation has forecasted a growth in earnings and dividends of 25 percent for the next two years, followed by growth rates of 20 percent
Bursa Corporation has forecasted a growth in earnings and dividends of 25 percent for the next two years, followed by growth rates of 20 percent and 15 percent for the following two years. It then expects a stable growth at a constant rate of 9 percent thereafter. The firm just paid a dividend of $1.50 to its shareholders. If the required rate of return is 15 percent, what is the Current value of Bursas stock?
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