Estimate of the stock current market value

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Burke Tires just paid a dividend of D0 = $1.40. Analysts expect the company's dividend to grow by 25% this year, by 15% in Year 2, grow by 10% in Year 3 and at a constant rate of 5% in Year 4 and thereafter. The required return on this low-risk stock is 10.00%. What is the best estimate of the stock's current market value?

Reference no: EM131879781

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