How much should you be willing to pay for the stock

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Reference no: EM131887194

A Company has a current dividend of $2. The dividend is expected to growth at a rate of 20% for the next two years, after two years the company will grow at a rate of 4% indefinitely. Plot a time-line and indicate the dividends and terminal value. If you require a return of 8%, how much should you be willing to pay for the stock?

Reference no: EM131887194

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