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Pepsi Company is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of $1.50, and a dividend in year

Pepsi Company is expected to pay a dividend in year 1 of $1.20, a dividend in year 2 of

$1.50, and a dividend in year 3 of $2.00. After year 3, dividends are expected to grow

at the rate of 10% per year. An appropriate required return (market capitalization rate)

for the stock is 14%. What should the stock should be worth today?

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