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Consider Penny's Pumpkin Co. It paid dividend this year of $1.80 and has a discount rate of 10.4%. a. If Penny's is expected to grow
Consider Penny's Pumpkin Co. It paid dividend this year of $1.80 and has a discount rate of 10.4%. a. If Penny's is expected to grow at the industry average growth rate of 4%, calculate the value of Penny's stock. b. Instead, calculate the value of Penny's stock if dividends were expected to grow at 7% for three years, before reverting to the industry average growth rate
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