Solution-Determining the variable growth

Determining the variable growth

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Variable Growth

A fast-growing firm recently paid a dividend of $0.40 per share. The dividend is expected to increase at a 25 percent rate for the next four years. Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is appropriate for this stock, what is its value?

Reference no: EM133116766

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Determining the variable growth

Reference no: EM133116766

Reference no: EM133116766

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