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Calculate the expected price of a stock given that the most recent dividend was $3.20. Dividends are expected to grow at a 15% rate for
Calculate the expected price of a stock given that the most recent dividend was $3.20. Dividends are expected to grow at a 15% rate for the next three years (i.e., t=0 to 1, t=1 to 2, and t=2 to 3), after which they will permanently grow at a constant rate of 4%. The required return on the stock is 12%.
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