Experiencing period of rapid growth

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Reference no: EM131943037

Betanet is also experiencing a period of rapid growth. Earnings and dividends are expected to grow at a rate of 15% during the next 2 years, at 11% in the 3rd year, and at a constant rate of 6% thereafter. Betanet’s last dividend was $1.12, and the required rate of return on the stock is 10%. Calculate the value of the stock today.

Reference no: EM131943037

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