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Yreka Pag paper company is a big producer of paper products. Due to its increased use of recycled materials, analysts expect that the firms earnings
Yreka Pag paper company is a big producer of paper products. Due to its increased use of recycled materials, analysts expect that the firms earnings and dividends will grow at 15% per year for the next 5 years. After that, analysts believe that competitors will catch up so the growth rate will decline to a historical run rate of 8%. If their most recent dividend (Do) is .35 and the required rate of return is 12%, what is the value of the stock today.
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