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Consider a company with total dividends of $0.5 per share for the mmost recent year (year=0). The company's dividends are expected to grow at a
Consider a company with total dividends of $0.5 per share for the mmost recent year (year=0). The company's dividends are expected to grow at a rate of 10% for the next 3 years and at a constant rate of 5% thereafter. Given the risk of the business, the required rate of return is 15%. What is the value of the firm's equity?
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