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Calculate the the terminal value

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Reference no: EM133119611

AgriCorp is in the rapid growth phase of its life cycle.The projected dividends for the next three years are $2.00, $2.50, and $3.00. After the third year, the growth rate of the dividends is projected to fall off to a constant 6%. Assume that the required rate of return is 15%.

a) Calculate the the terminal (horizon) value.

b) Calculate the value of the stock today.

Reference no: EM133119611

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