Experiencing a period of rapid growth

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Reference no: EM131521810

Snyder Computer Chips, Inc. is experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15 percent during the next two years, at 13 percent in the third year, and at a constant rate of 6 percent thereafter.

Snyder’s last dividend was $1.15, and the required rate of return on the stock is 12 percent.

Calculate the value of the stock today.

Reference no: EM131521810

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