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You are considering the purchase of a common stock that just paid a dividend of $3.00 yesterday. You expect this stock to have a growth

You are considering the purchase of a common stock that just paid a dividend of $3.00 yesterday. You expect this stock to have a growth rate of 20 percent for the next 3 years, then to have a long-run normal growth rate after year 3 to be constant at 5 percent thereafter. If you require a 14 percent rate of return, how much should you be willing to pay for this stock?

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