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National Cycling Corporation (NCC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last
National Cycling Corporation (NCC) has been growing at a rate of 25% per year in recent years. This same growth rate is expected to last for another two years. The growth rate will then level off to a normal rate of 6% per year indefinitely. The company just paid a dividend of $2 per share on its common stock. How much investors will be willing to pay today for each share of NCCs common stock if they require a rate of return of 14%?
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