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You are evaluating the stock of InnovateTech Inc., a company expected to have a significant change in its growth pattern. Currently, the company pays a
You are evaluating the stock of InnovateTech Inc., a company expected to have a significant change in its growth pattern. Currently, the company pays a dividend of $ per share. Dividends are projected to grow at a rate of per year for the next four years. After that period, the growth rate is expected to stabilize at per year indefinitely. The required rate of return for InnovateTech Inc. is What is the current intrinsic value of InnovateTech Inc.s stock?
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