Calculate the value of evergrow

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EverGrow corporation has a beta of 1.3 just paid a dividend of $2.35. The risk-free rate is 1.65% and the expected market return is 7.0%. Your growth analysts have concluded that the growth rate earnings per share and dividends will be 4.25% per year for the next three years and 3.5% per year thereafter. Calculate the value of EverGrow using the 2-stage dividend discount model.

Reference no: EM131298476

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