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To be more realistic, you decide to use a two stage dividend discount model. Imagine that Growth Prospects expect 9% growth for only the next
To be more realistic, you decide to use a two stage dividend discount model. Imagine that Growth Prospects expect 9% growth for only the next 2 years, and then the growth will slow to a 3% rate. Assume the required rate is still 10% and that the most recent dividend was $2. What is the new intrinsic value of Growth Prospects? Round your answer to two decimal places.
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