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Stock C is expected to pay a dividend of $5.20 next year. Thereafter, dividend growth is expected to be 22.00% a year for five years
Stock C is expected to pay a dividend of $5.20 next year. Thereafter, dividend growth is expected to be 22.00% a year for five years (i.e., years 2 through 6) and zero thereafter. If the market capitalization rate for each stock is 12.00%, what is the stock price of Stock C? What if the market capitalization rate for Stock C is 9.00%?
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