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The dividends of a company are expected to grow at an annual rate of 12% over the next four years and then increase to a
The dividends of a company are expected to grow at an annual rate of 12% over the next four years and then increase to a constant growth rate of 14% per year forever. The company currently pays a dividend of $0.48. What is the price you are willing to pay if you want a 16% rate of return?
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