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Crane, Inc., management expects to pay no dividends for the next six years. It has projected a growth rate of 25 percent for the next
Crane, Inc., management expects to pay no dividends for the next six years. It has projected a growth rate of 25 percent for the next seven years. After seven years, the firm will grow at a constant rate of 5 percent. Its first dividend, to be paid in year 7, will be $3.29. If the required rate of return is 25 percent, what is the stock worth today?
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