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Problem 4 (6 points) Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all
Problem 4 (6 points) Agarwal Technologies was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $0.25 dividend 3 years from today. Management plans to increase that dividend at a relatively rapid rate for 2 years (50% and then 25%, respectively), and then to increase it at a constant rate of 8.00% thereafter. Assuming a required return of 11.00%, what is your estimate of the stock's current value
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