At what constant rate is the stock expected to grow

Reference no: EM13302872

Mitts Cosmetics Co.'s stock price is $43.31, and it recently paid a $2.50 dividend. This dividend is expected to grow by 24% for the next 3 years, and then grow forever at a constant rate, g, and rs = 15%. At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places.

Reference no: EM13302872

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