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XYZ has been growing at a rate of 30% per year in recent years. This same supernormal growth is expected to last for another two
XYZ has been growing at a rate of 30% per year in recent years. This same supernormal growth is expected to last for another two years (30% for Year 0 to Year 1 and Year 1 to Year 2), then at a constant rate of 10% thereafter.
b) Now assume that XYZs period of supernormal growth is to last another 5 years rather than 2 years. How would this affect its price, dividend yield and capital gains yield?
Please provide the answers in words.
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