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One year from today, investors anticipate that Lopez Corporations common stock will pay a dividend of $4.00 per share. After that, investors believe that the
One year from today, investors anticipate that Lopez Corporations common stock will pay a dividend of $4.00 per share. After that, investors believe that the dividend will grow at 30% per year for two years and 15% per year for the following two years before settling down to a long-run growth rate of 7%. The required rate of return on Lopezs stock is 15%. What is the stocks value based on the above information?
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