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Consider a stock with a non-constant growth of dividends. The dividend payment at t = 0, D 0 = $2.50 and will grow at 20%
Consider a stock with a non-constant growth of dividends. The dividend payment at t = 0, D0 = $2.50 and will grow at 20% at the end of first year, D1 = $3.00 After this high growth, dividend payments are expected to grow at a constant rate of 8%. The required rate of return on investment in this stock is 11%. Based on this financial information, compute the value of this stock.
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