Multistage dividend discount model

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Reference no: EM131942822

Camorama, Inc. is expected to pay a dividend in year 1 of $1.7, a dividend in year 2 of $2.8, and a dividend in year 3 of $3.8. After year 3, dividends are expected to grow at the rate of 4% per year. An appropriate required return for the stock is 11%. Using the multistage dividend discount model, what should be the price of the stock today?

Reference no: EM131942822

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