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Stars Ltd, being a local company and engaging in agricultural products. Its last dividend that was paid yesterday, was $2.00. Stars ltd.'s stock dividends are
Stars Ltd, being a local company and engaging in agricultural products. Its last dividend that was paid yesterday, was $2.00. Stars ltd.'s stock dividends are expected to experience supernormal growth of 30 percent for the next 3 years, and then return to its long-run constant growth rate of 6 percent.The required rate of return is 13%.What is the stock's value under these conditions?
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