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Consider the following scenario: The last dividend the company paid was D0=$1 . The rate of growth in both earnings and dividends during the 3-year
Consider the following scenario: The last dividend the company paid was D0=$1 . The rate of growth in both earnings and dividends during the 3-year nonconstant growth period is gs=11% , the normal growth rate after the nonconstant period, i.e., starting at the end of year three and in the future is gn=4% , and the required (minimum acceptable) rate of return on the stock is rs=10% . What is the formula for the stocks intrinsic value in this case?
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