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TheBloomCompany has just paid a $1.7 dividend per share. The firm is experiencing rapid growth which is expected to see its dividendsgrow at 17% for
TheBloomCompany has just paid a $1.7 dividend per share. The firm is experiencing rapid growth which is expected to see its dividendsgrow at 17% for two years and then the rate of growth will dropto 5% for yearthree onwards.
What is the value of Bloom's shares if the required rate of return is 19.6%?
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