Assume that the dividend growth rate estimate

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California Clinics, an investor-owned chain of ambulatory care clinics, just paid a dividend of $2 per share. The firm's dividend is expected to grow at a constant rate of 5 percent per year, and investors require a 15 percent rate of return on the stock.

Assume that the dividend growth rate estimate is increased to a constant 7 percent per year. What is the stock's value?

Reference no: EM131025486

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