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Phillips Co. is experiencing rapid growth. Dividends are expected to grow at a rate of 30 percent during the next three years, 18 percent over
Phillips Co. is experiencing rapid growth. Dividends are expected to grow at a rate of 30 percent during the next three years, 18 percent over the following year, and then 8 percent per year indefinitely. If the required return is 11 percent and the company just paid a dividend of $0.97, what is the value of the firm's stock?
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