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Due to a change in import tax policy, earnings and dividends in an automobile company are expected to grow at a rate of 20% for
Due to a change in import tax policy, earnings and dividends in an automobile company are expected to grow at a rate of 20% for the next 2 years. After this period, the firm is expected to resume growth at the industry average of 5% thereafter. The firm recently paid a dividend of S2 and the required return is 25% What is the most you should pay for the company's stock? $5.70 $13.44 $42.47 O $11.50 None of the listed items is correct
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