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The Emu Is A Bird That Does Not Fly company is experiencing significant growth. Dividends are growing at 20% and the company expects to stay
The Emu Is A Bird That Does Not Fly company is experiencing significant growth. Dividends are growing at 20% and the company expects to stay at that rate of growth for the next 3 years. In the fourth year dividends will grow at 15% and thereafter dividends will grow indefinitely at a constant rate of 10%. The company just paid a dividend of $2.00 (i.e., an investor buying the stock today does not receive this dividend). If the required rate of return is 12%, what is the value per share of the company?
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