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XYZ common stock recently paid annual dividend in the amount of $1.75 per share. The analysts estimate of the firms growth forecast over the next

  • XYZ common stock recently paid annual dividend in the amount of $1.75 per share. The analysts estimate of the firm’s growth forecast over the next 5 years is 15%. You expect the firm to slow down in the long run and estimate the long-term growth rate after 5 years to be 8%. If the required rate of return on the stock is 10%, what is your estimate of the stock price?

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