At what constant rate is the stock expected to grow

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Reference no: EM131962968

Jones Textile Co.'s intrinsic stock price is $72, and it recently paid a $2.00 dividend per share.

This dividend is expect to grow by 25% for the next five years, then grow forever at constant rate, g. Also, r_s= 12%.

At what constant rate is the stock expected to grow after year 5?

Reference no: EM131962968

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