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Nonconstant growth valuation

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Nonconstant growth valuation

Bickum Inc. just paid a dividend of D0 = $4.50.  Analysts expect the company's dividend to grow by 12% this year, by 8% in Year 2, and at a constant rate of 4% in Year 3 and thereafter.  The required return on this stock is 10.00%.  What is the per-share estimate of the stock's intrinsic value?

Reference no: EM133121614

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