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Suppose a firm just paid a dividend of $1.00. You expect that the firm will grow at 30% next year, 20% the following year, and
Suppose a firm just paid a dividend of $1.00. You expect that the firm will grow at 30% next year, 20% the following year, and at a constant rate of 8% thereafter. The required return on this firms equity is 15%. What is the price of the stock?
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