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Sally s Sweet Shop expects to pay $ 2 in dividends next year and increase the dividend 1 5 % the following year and 1

Sally

s Sweet Shop expects to pay $

2

in dividends next year and increase the dividend

15 %

the following year and

13 %

the following year. After that the dividends will grow at

5 %

per year indefinitely. The required return is

18 % .

What is the price of Sally

s Sweet Shop?

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