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Firm AAA just paid a dividend of $1.5. The dividend growth rate will be 4% for 2 years, after which dividends will grow at a
Firm AAA just paid a dividend of $1.5. The dividend growth rate will be 4% for 2 years, after which dividends will grow at a rate of 8.0% forever. The required return on AAAs stock = 12.0%. AAAs current stock price, P0 = ? (Hint: the non-constant dividend growth calculator might be helpful for this kind of question.)
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