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The common stock of a firm paid a dividend of $1.75 in the year just ended. Suppose their dividend is expected to grow at a
The common stock of a firm paid a dividend of $1.75 in the year just ended. Suppose their dividend is expected to grow at a rate of 10% in the coming year, 8% in year two, and at a rate of 4% annually thereafter. If the required rate of return is 10%, what is the current value of their stock?
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