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Zeta Inc. expects earnings/dividends to grow at an annual rate of 20, 15, and 10 percent respectively over the next three years after which the
Zeta Inc. expects earnings/dividends to grow at an annual rate of 20, 15, and 10 percent respectively over the next three years after which the company settles into a constant growth pattern of 5 percent per year indefinitely. If current dividend is $ 2 per share and investors require a 16 percent annual return on Vega stock, what is a fair price for a share of Vega's stock today?
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