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Red Hill Chemical's current stock price is $42 and it recently paid a $2.00 dividend. This dividend is expected to grow by 15% for the
Red Hill Chemical's current stock price is $42 and it recently paid a $2.00 dividend. This dividend is expected to grow by 15% for the next 2 years, and then grow at a constant rate, g, forever. If the your required rate of return for this stock is 11%, what is your estimate of the constant growth rate, g, after year 2?
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