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Katie's Bakery currently pays a $5.00 common stock dividend. Dividend have been recently growing at 12% annual rate and are expected to continue growing at
Katie's Bakery currently pays a $5.00 common stock dividend. Dividend have been recently growing at 12% annual rate and are expected to continue growing at this rate in the next four years. Thereafter the growth rate is expected to be 6% for the foreseeable future. What is the current value of Katie's Bakery common stock to an investor requiring a 15% rate of return?
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