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The Edgar Corporation currently (Do) pays $2 per share dividend. This dividend is expected to grow at a 20% annual rate over the first 3

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The Edgar Corporation currently (Do) pays $2 per share dividend. This dividend is expected to grow at a 20% annual rate over the first 3 years, 12% annual rate over the next 2 years, and then at a 6% annual rate into the foreseeable future. What would you pay for a share of this stock, if you demand a 20% rate of return on the investment? Sudha Krishnaswami Lechure Notes Page 1 of 2

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