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Yesterday, company X paid its annual dividend of $1.66 per share. It is expected that dividends will grow at a 20 percent annual rate for
Yesterday, company X paid its annual dividend of $1.66 per share. It is expected that dividends will grow at a 20 percent annual rate for the next 5 years. Thereafter, the growth rate will level off at 8% per year. The current stock price is $30 per share. If the required return on this stock is 18%, should you buy the stock?
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