XY has just paid a cash dividend of shs 2 per share investors requie 16% return from investments such as this, if the divide is expected to grow steadily at 8% per annum what is the correct value of the stock ? what will the stock be worth in 5 years ? what will be the price of the stock if it were to grow at 20% per annum for the next three years and then 8% per annum forever?

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