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IBM has just paid a dividend of $4 per share (this dividend is already paid, sometimes called Dividend 0). It is estimated that the company's
IBM has just paid a dividend of $4 per share (this dividend is already paid, sometimes called Dividend 0). It is estimated that the company's dividend will grow at a rate of 35% in year 1 and 20% in year 2. The dividend is then expected to grow at a constant rate of 3% thereafter. The company's opportunity cost of capital is 12%, what is the current value of IBM's stock?
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