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Suppose that the last dividend paid on IBM share is $100. The dividends are expected to grow at a rapid growth rate of 10% over
Suppose that the last dividend paid on IBM share is $100. The dividends are expected to grow at a rapid growth rate of 10% over the next three years, then at a constant growth rate of 4% per year thereafter. If the expected rate of return on Intel share ( a similar asset in the same risk class) is 12%, find the fundamental market price of IBM stock. Keep four decimal places in your computations
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