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Whizzkids, Inc., is experiencing a period of rapid growth. Earnings and dividends per share are expected to grow at a rate of 1 8 percent

Whizzkids, Inc., is experiencing a period of rapid growth. Earnings and dividends per
share are expected to grow at a rate of 18 percent during the next two years, 15 percent in
the third year, and at a constant rate of 6 percent thereafter. Whizzkids last dividend,
which has just been paid, was $1.15. If the required rate of return on the stock is 12
percent, what is the price of a share of the stock today?

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