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Carnes Cosmetics Co.'s stock price is $42, and it recently paid a $1.75 dividend. This dividend is expected to grow by 26% for the next
Carnes Cosmetics Co.'s stock price is $42, and it recently paid a $1.75 dividend. This dividend is expected to grow by 26% for the next 3 years, then grow forever at a constant rate, g; and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places.
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