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Lowell Industries just paid a dividend of D0 = $2.50. Analysts expect the company's dividend to grow by 20% each year for the first two
Lowell Industries just paid a dividend of D0 = $2.50. Analysts expect the company's dividend to grow by 20% each year for the first two years, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 7.50%. What is the best estimate of the stocks intrinsic value?
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