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please show steps and process thanks Trendsetter Inc. is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay
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Trendsetter Inc. is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends in the very near future. However, investors expect Trendsetter to begin paying dividends, beginning with a dividend of $1.00, 3 years from today. The dividend should grow rapidly at a rate of 50% per year during year 4 and 5; but after year 5, growth should be a constant 8% per year. If the required return on Trendsetter is 15%, what is the value of the stock today thanks
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