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Clear Lake (CL) Corporation is expected to pay annual dividends of $1.2, $1.44, and $2 at the end of each of the next three years.
Clear Lake (CL) Corporation is expected to pay annual dividends of $1.2, $1.44, and $2 at the end of each of the next three years. After 3 years, the dividend is expected to grow at a constant rate of 10% per year forever. Stockholders require a return of 20% to invest in CL. Calculate the intrinsic value of the CL stock.
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