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XYZ company paid a dividend of 1.60 today. It expects dividend payments to increase by 15% every year for the next three years before resuming
XYZ company paid a dividend of 1.60 today. It expects dividend payments to increase by 15% every year for the next three years before resuming a normal growth of 6%. What should you pay for this stock if you demand a 16% rate of return? Show equation and work.
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