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You have a stock that has grown its dividend at a long-term growth rate of 5%. It just paid a $5 dividend, Dividends are paid
You have a stock that has grown its dividend at a long-term growth rate of 5%. It just paid a $5 dividend, Dividends are paid once per year. For the next two years however dividends are expected to grow at a super high rate of 15% then it will fall to back to the long term rate of 5%. If the required return is 8% what is the correct price for this stock today?
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