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The Ramirez Company's last dividend was $2.75. Its dividend growth rate is expected to be constant at 38% for 2 years, after which dividends are
The Ramirez Company's last dividend was $2.75. Its dividend growth rate is expected to be constant at 38% for 2 years, after which dividends are expected to grow at a rate of 7% forever. Its required return (rS) is 12%. What is the best estimate of the current stock price? Do not round intermediate calculations. a. $99.66 b. $87.34 c. $96.91 d. $108.13 e. $100.90
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