Experience abnormal earnings growth

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Reference no: EM131957865

Financial analysists expect that WMT will experience abnormal earnings growth of 15% for the next three years. After that, WMT's growth rate will drop to a constant rate of 7%. If WMT's current dividend is $1 per share (D₀=$1) and investors require 12% return on the stock, what should WMT's stock price be?

Reference no: EM131957865

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