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Question 26 You are evaluating a stock that is expected to experience supernormal growth in dividends of 10% over the next two years. Following this

Question 26

You are evaluating a stock that is expected to experience supernormal growth in dividends of 10% over the next two years. Following this period, dividends are expected to grow at a constant rate of 3%. The stock paid a dividend of $3 last year and the required return on the stock is 14%. What is the fair present value of this stock?

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