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Non-constant growth Carnes Cosmetics Co.s stock price is $30 and it recently paid a $1.00 dividend. This dividend is expected to grow by 30% for

Non-constant growth Carnes Cosmetics Co.s stock price is $30 and it recently 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; the required return is 9%. At what constant rate is the stock expected to grow after year 3?

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answer is 2.25%

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