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You are considering the purchase of a common stock that just paid a dividend of $2.00. You expect this stock to have a growth rate

You are considering the purchase of a common stock that just paid a dividend of $2.00. You expect this stock to have a growth rate of 30 percent for the next 3 years, resulting in dividends of D1=$2.60, D2=$3.38, and D3=$4.39. The long-run normal growth rate after year 3 is expected to be 10 percent (that is, a constant growth rate after year 3 of 10% per year forever). If you require a 15 percent rate of return, how much should you be willing to pay for this stock

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