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The Ramirez Company is expected to pay a dividend of $1.00 next year. Its dividend growth rate i then expected to be 50% for one
The Ramirez Company is expected to pay a dividend of $1.00 next year. Its dividend growth rate i then expected to be 50% for one year, then 25% for the following year, after which dividends are expected to grow at a rate of 4% forever. Your required return (Ty) for this stock is 12%. How muct would you be willing to pay for this stock?
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