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If you are a stockholder in a firm that expects to experience supernormal growth over the next 3 years and they plan to increase the
If you are a stockholder in a firm that expects to experience supernormal growth over the next 3 years and they plan to increase the dividends by 10% in the following 3 years. After that the dividends are expected to grow at a constant rate of 10 percent. If you believe that a 15% required return is appropriate for you. What is this stock worth to you now if the firm paid last year a dividend of $10.00?
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