How much would you pay for the stock today

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Question: Global Imports is a fast-growing company with a recent growth of dividends of 27% p.a. However, the company expects that this rapid growth will end in three years. After that time, dividends are expected to grow at 8% p.a. How much would you pay for the stock today if similar stocks in the market are returning 10%? Assuming dividends just paid is $1 (D0).

Reference no: EM133491782

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