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Consider a firm that just paid a dividend of $10.20. They plan to increase dividends by 5% in year one, 10% in year two, 20%
Consider a firm that just paid a dividend of $10.20. They plan to increase dividends by 5% in year one, 10% in year two, 20% in year three, 20% in year four, and then 3% per year thereafter. You feel that a 16% required return is appropriate. What is this stock worth to you? (Tip Non-Constant Growth/ Supernormal Growth Case)
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