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Calculate the current value of this stock

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Reference no: EM132935038

Problem - A firm just paid a dividend of $1.00. Its dividends are expected to grow at 15% per year for two years, after which they are expected to grow indefinitely at 5% per year. The required rate of return is 11%. Draw the timeline indicating the dividend payments up to end of year 5. Calculate the current value of this stock.

Reference no: EM132935038

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