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Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3
Consider a stock that most recently paid a dividend of $0.75. The company plans to increase dividends by 50% each year for the next 3 years, then by 20% each year for 4 years, and then level off to a permanent growth rate in dividends of 6%. If the required return for this stock is 11%, what is the value of the stock today?
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