At what constant rate is the stock expected to grow

Reference no: EM133616833

Problem: Carnes Cosmetics Co.'s stock price is $45, and it recently paid a $1.25 dividend. This dividend is expected to grow by 24% for the next 3 years, then grow forever at a constant rate, g; and r_s = 12%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations.

Reference no: EM133616833

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