Discount rate is appropriate for this stock-what is value

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A fast-growing firm recently paid a dividend of $0.35 per share. The dividend is expected to increase at a 20 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: EM13885409

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