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You are planning to buy a stock that has just paid a dividend (D0) of $1.83. In addition, you anticipate the following growth rates: Year
You are planning to buy a stock that has just paid a dividend (D0) of $1.83. In addition, you anticipate the following growth rates:
Year 1 = -5% Year 2 = 0% Year 3 = 11% Year 4 = 110% Years 5 through infinity = 3.4% Assume a discount rate of 12.8%. Based on this, what is the value of the stock today?
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