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Show your work please A stock you are evaluating is expected to experience supernormal growth in dividends of 10 percent over the next five years.
Show your work please
- A stock you are evaluating is expected to experience supernormal growth in dividends of 10 percent over the next five years. Following this period, dividends are expected to grow at a constant rate of five percent. The stock paid a dividend of $0.50 last year and the required rate of return on the stock is 11 percent. Calculate the stocks fair present value.
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