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Consider a firm that just paid a dividend of $1 per share. The company expects growth in the coming four years to be 17%, 14%,
Consider a firm that just paid a dividend of $1 per share. The company expects growth in the coming four years to be 17%, 14%, 10%, and 8%. Starting the fifth year, the firm expects to grow at a constant rate of 5%. The required rate of return for the company is 9%. If the stock of the firm is fairly valued, what should we observe as the market price of this firm? Round your intermediate steps to three decimals.
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