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Hernandez Products is a rapidly growing firm. Dividends are expected to grow at the rate of 1 8 percent annually for the next 1 0

Hernandez Products is a rapidly growing firm. Dividends are expected to grow at the rate of 18 percent annually for the next 10 years. The growth rate after the first 10 years is expected to be 7 percent annually. The current dividend is $1.82. Investors require a rate of return of 19 percent on this stock. Calculate the intrinsic value of this stock.
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