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XYZ Corp. is currently priced at $70.00 per share in the market and has just paid a dividend of $5.00. Analysts expect the dividend to
XYZ Corp. is currently priced at $70.00 per share in the market and has just paid a dividend of $5.00. Analysts expect the dividend to growth at a rate of 20% per year for the next 3 years and then growth at 6% per year into the foreseeable future. What constant discount rate is required so that the dividend discount model returns the current market price? Hint: use goal seek.
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