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NONCONSTANT GROWTH Carnes Cosmetics Co's stock price is $ 3 0 , and it recencly paid a $ 1 . 0 0 dividend. This dividend

NONCONSTANT GROWTH Carnes Cosmetics Co's stock price is $

30,

and it recencly paid a $

1.00

dividend. This dividend is expected to grow by

30 %

for the next

3

years, then grow forever at a constant rate,

g

; and

x_{s} = 9 % .

At what constant rate is the stock expected to grow after Year

3 ?

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