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consider elixir drug company, which is enjoying rapid growth from the introduction of its new back-rub ointment. The dividend for a share of Elixirs stock
consider elixir drug company, which is enjoying rapid growth from the introduction of its new back-rub ointment. The dividend for a share of Elixirs stock a year from today will be $1.15 During the next four years, the dividend will grow at 15% per year. After that, growth will be equal to 10% per year. Calculate the present value of a share of stock if the required return is 15%.
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