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Cojective, Inc just paid a dividend of $6.19 per share (that is, Do = 6.19). Investors expect this dividend to grow at 25% next year
Cojective, Inc just paid a dividend of $6.19 per share (that is, Do = 6.19). Investors expect this dividend to grow at 25% next year (i.e., in year 1) and at 15% the following year (i.e., in year 2). Thereafter, dividends are expected to grow at a constant rate of 5% forever (.e., for year 3,4,5...., oo). If the required rate of return on this stock is 13.5%, the equilibrium price of the stock should be $____
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