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You are considering the purchase of a common stock that just paid a dividend of $0.88 yesterday. You expect this stock to have a growth
You are considering the purchase of a common stock that just paid a dividend of $0.88 yesterday. You expect this stock to have a growth rate of 11.25% for the next 3 years. The long-run normal growth rate after year 3 is expected to be 4.15%. If you require a 9.33% rate of return, how much would you be willing to pay for this stock?
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