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James and James, Inc. paid a dividend of $2 per share last year reflecting a supernormal growth rate of 20%. Dividends will grow at 10%
James and James, Inc. paid a dividend of $2 per share last year reflecting a supernormal growth rate of 20%. Dividends will grow at 10% for the next 2 years before settling down to a constant growth of 5%. The required rate of return is 8%. What is the fair market value/price (P0) of their common stock? Please show all work. (No Excel)
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