Horizon value of constant growth portion of firms dividends

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Orwell Building Supply just paid a $2 dividend. The dividends are expected to grow at 30% for the first year, 25% for the second year, and then 15% for the third year. After which, the long-run rate is expected to be 6%. What is the expected dividend next year? What is the horizon value of the constant growth portion of the firm’s dividends? What is the overall intrinsic value (market value today) of the Orwell's stock?

Reference no: EM13911118

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