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Peterson Corporation is expected to enjoy a very rapid growth rate in dividends of 30 percent a year for the next three years. This growth
Peterson Corporation is expected to enjoy a very rapid growth rate in dividends of 30 percent a year for the next three years. This growth rate is then expected to slow to 20 percent a year for the next two years. After that time, the growth rate is expected to be a constant 6 percent a year. Current dividend is $2. The required rate of return is 20 percent. What is the estimated price of the stock?
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