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You're considering whether to buy company XYZ ' s stock. You observe that Company XYZ ' s current - year dividend payment is , and

You're considering whether to buy company XYZ's stock. You observe that Company XYZ's current-year dividend payment is , and you project that the company's dividend is going to grow abnormally at 20% for two years and then the growth of dividend is going to slow down to 6% and will grow at 6% perpetually. Assume the discount rate is 10%. What's the intrinsic value of XYZ's stock price according to your estimation?
a. $54.11
b. $56.78
c. $61.06
d. $59.23 Llease show step by step exampel
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