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The most recent dividend paid by the Acme company was $1.05. Due to the introduction of an exciting new product, analysts expect sales to increase
The most recent dividend paid by the Acme company was $1.05. Due to the introduction of an exciting new product, analysts expect sales to increase by 15% in each of the next four years. At the end of that time, sales growth is expected to settle down to a constant long-term average of 6.5% per year. If investors require an annual return of 9% on Acmes stock, at what price will that stock sell today?
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