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Mcgah enterprises expect earnings and dividends to grow at a rate of 21% for the next four years, after the growth rate in earnings and
Mcgah enterprises expect earnings and dividends to grow at a rate of 21% for the next four years, after the growth rate in earnings and dividends will fall to zero i.e,g=0. The company's last dividend was $1.25, its beta is 1.20, the market risk premium is 5.5% and the risk-free rate is 3%.
What is the current price of the common stock?
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