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The Bellisimo Co. has just paid a dividend of $1.20. It has announced that it will grow its dividend by 12% each year for the
The Bellisimo Co. has just paid a dividend of $1.20. It has announced that it will grow its dividend by 12% each year for the next three years. It will then grow the dividend by 4% a year thereafter. How much would you be willing to pay for a share in Bellisimo today if your required rate of return is 10%? Show your calculations with your answer.
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