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Problem 2 (10 points): The Hart Mountain Company is expected to experience an unusually high growth rate in dividends (20%) during the next 3 years.

Problem 2 (10 points): The Hart Mountain Company is expected to experience an unusually high growth rate in dividends (20%) during the next 3 years. However, in the fourth year the firm is expected to begin growing at a constant long-term growth rate of 4%. Last year's dividend was $2.00 per share, and the firm's required return is 10%. What should be the current price of the common stock?

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