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Consider a stock that will have dividend growth rates in the next three periods of 11%, 17%, and 4%, respectively. The third growth rate remains
Consider a stock that will have dividend growth rates in the next three periods of 11%, 17%, and 4%, respectively. The third growth rate remains forever. The company just paid a dividend, D0, of $1.205. The interest rate is 10%.
Using 1.63 as the dividend in period 3, what is the price of the stock at time 2?
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