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Oriole Inc., is expected to grow at a rate of 21.500 percent for the next five years and then settle to a constant growth rate
Oriole Inc., is expected to grow at a rate of 21.500 percent for the next five years and then settle to a constant growth rate of 8.000 percent. The company recently paid a dividend of $2.35. The required rate of return is 16.000 percent.
Find the present value of the dividends during the rapid-growth period if dividends grow at the same rate as the company.
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