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Nonconstant Dividend Growth Valuation A company currently pays a dividend of $ 2 . 2 per share ( D 0 = $ 2 . 2

Nonconstant Dividend Growth Valuation
A company currently pays a dividend of $2.2 per share (D0= $2.2). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 1.1, the risk-free rate is 9.5%, and the market risk premium is 5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent. Possible to calculate with a financial calculator?

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