Companys required rate of return

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Technologies is expected to grow at a rate of 35 per cent for the next 3 years and then settle to a constant growth rate of 7 per cent. The company will pay no dividend for the first 2 years and pay a dividend of $1.25 in year 3. What will be the company's price when the company's supernormal growth ends? What is the price of the share today? The companys required rate of return is 12 per cent.

Reference no: EM132097093

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