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You are evaluating a stock that is expected to experience supernormal growth in dividends of 18% over the next two years. Following this period, dividends
You are evaluating a stock that is expected to experience supernormal growth in dividends of 18% over the next two years. Following this period, dividends are expected to grow at a constant rate of 4%. The stock paid a dividends of $2 last year and the required return on the stock is 13%. What is the fair present value of this stock ?
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